Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Siemens to pay 1 bn euros to up stake in Indian arm
BackBack

Siemens to pay 1 bn euros to up stake in Indian arm

Siemens to pay 1 bn euros to up stake in Indian arm

Premium

Mumbai: Siemens AG will spend about €1 billion ($1.4 billion) to raise its stake in its booming Indian subsidiary Siemens Ltd, it said on Monday.

Siemens said in a statement on Monday it planned to raise its stake to 75% from about 55%, offering Rs930 per share or a 28% premium to Friday’s closing price.

“Siemens is expanding its stake with the aim of further developing its business in India," the statement said.

The offer sent Siemens Ltd shares up by more than 18% to Rs867 by 2:02 pm. Siemens shares fell 0.4% amid a 0.8% drop in the blue chip Dax index.

The conglomerate is enjoying strong growth in business in emerging markets, with new orders from India alone up 160% in the latest quarter, boosted by infrastructure and power technology demand.

Siemens Ltd India had revenue of around €1.5 billion and profit from operations of around €200 million in 2010.

The move follows that of Swiss rival ABB Ltd, which last year raised its holding in its Indian subsidiary to 75%, paying $1 billion for the stake.

Siemens said that pending regulatory approval, the offer is expected to open on 25 March and close on 13 April.

HSBC Securities and Capital Markets will manage the offer, the statement said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 31 Jan 2011, 02:47 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App