Siemens to sell $2.6 billion stake in Siemens Energy to fund Altair acquisition

Investing.com — Siemens AG (OTC:SIEGY) intends to sell a $2.6 billion stake in Siemens Energy AG (ETR:ENR1n) in the forthcoming months. The sale is part of the company’s strategy to raise funds for its $10 billion purchase of software maker Altair Engineering Inc.

The German engineering conglomerate is planning to divest approximately 6% of its 17% holding in Siemens (ETR:SIEGn) Energy by the end of September, according to Chief Financial Officer Ralf Thomas. Siemens had previously spun off the turbine manufacturer in 2020.

The value of Siemens Energy shares has increased by more than four times this year. This surge is attributed to the positive outlook that the company is set to resolve persistent issues at its Gamesa wind-turbine unit. Last month, the manufacturer raised its midterm targets due to the heightened demand for products that power data centers.

In October, when Siemens announced the acquisition of Altair, it stated that the deal would be financed by selling stock in listed entities and from the proceeds of recent divestments. This includes the €3.5 billion ($3.7 billion) sale of its Innomotics heavy-duty motors operations.

Siemens plans to eventually sell its entire holding in Siemens Energy, but it is not in a hurry, said Thomas.

The CFO also indicated earlier this year that Siemens is considering selling 5% of its approximately 75% holding in Siemens Healthineers AG (ETR:SHLG).

This could generate around €3 billion ($3.2 billion) based on current market prices. As of Tuesday’s close, a 6% stake in Siemens Energy was valued at around €2.5 billion ($2.6 billion).

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