Islamabad, Oct 14: Siemens Pakistan Energy Business Sale Approved for Rs. 17.8 billion by Parent Company
Siemens Pakistan Energy Business Sale announced to the main stock exchange on Monday that the sale of its energy division to a non-affiliated party for Rs. 17.82 billion has been approved by the company’s parent.
The sale and transfer of the company’s energy business segment to a non-affiliated Siemens Energy Group Entity, Siemens Gamesa Renewable Energy (Private) Limited (the buyer), on a going concern basis, was approved by the Board with a majority vote in its meeting held on October 11, 2024.
The buyer will receive an aggregate consideration of approximately Rs. 17.82 billion as at the valuation date, which is March 31, 2024, in line with the spin-off of the energy business by Siemens AG (Parent Company) in 2020.
At the time of valuation, the Energy Business’s net book value was roughly Rs. 17.61 billion.
Net book value as of the Effective Date (i.e., Transaction Closure Date) and certain other contractual subsequent events in accordance with the terms and conditions of the agreement to be executed with the buyer will be used to calculate the amount of cash to be received from the buyer and the gain or loss on the transaction.
SIEM’s scrip at the market was trading at Rs. 522.51 at the time of reporting, up 10%, or Rs. 47.5, with 2,130 shares on Monday.
