Siemens AG to pick 18% in India unit for $2.28bn

New Delhi: German conglomerate Siemens Aktiengesellschaft (Siemens AG) will acquire an additional 18 per cent stake in its India unit at 2.1 billion euros ($2.28 billion), the company announced on Wednesday. The move will help the firm raise its stake in the India unit, Siemens Ltd, to 69 per cent from 51 per cent at present, according to an official statement. Siemens AG will acquire the stake from Siemens Energy, whose stake in Seimens Ltd will come down from 24 per cent to 6 per cent. Siemens AG has taken measures to support the stability of Siemens Energy AG and accelerate separation in India, the statement said.

Specifically, Siemens intends to enter into a share purchase agreement with Siemens Energy to acquire an 18 per cent stake in Siemens Ltd (India) from Siemens Energy for 2.1 billion euros in cash, it said.

On the completion of this deal, Siemens Energy’s stake in Siemens Ltd will decline from 24 per cent to 6 per cent, it added.