Siemens Pakistan’s Parent Company Okays Sale of Energy Business for Rs. 17.8 Billion

The parent company of Siemens (Pakistan) Engineering (PSX: SIEM) has approved the sale of its energy business to a non-affiliated entity for Rs. 17.82 billion, SIEM informed the main bourse on Monday. “In line with the Spin-off of the Energy Business by Siemens AG (Parent Company) in 2020, the Board has approved with a majority in its meeting held on October 11, 2024, the sale and transfer of the Company’s Energy Business Segment on a going concern basis to a non-affiliated Siemens Energy Group Entity i.e. Siemens Gamesa Renewable Energy (Private) Limited (the buyer) for an aggregate consideration of approximately Rs. 17.82 billion as at the valuation date i.e. March 31, 2024,” the stock filing stated. The net book value of the Energy Business as of the valuation date was approximately Rs. 17.61 billion. The determination of cash to be received from the buyer and gain/loss on the transaction is subject to computation based on net book value as of 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. The closure of the transaction shall remain subject to Shareholders’ and other regulatory approvals, the filing added. At the time of filing, SIEM’s scrip at the bourse was Rs. 522.51, up 10 percent or Rs. 47.5 with 2,130 shares on Monday.