Siemens Sells Energy Unit for Rs 17.8 Billion

Siemens Pakistan Engineering Ltd (SPEL) has announced the approval of its board of directors to sell its energy business segment to Siemens Gamesa Renewable Energy (Pvt) Ltd, a non-affiliated entity, for approximately Rs 17.8 billion.
In a stock filing on Monday, SPEL reported that the net book value of the energy business as of the valuation date was around Rs 17.61 billion. This decision follows the 2020 spin-off of Siemens AG’s energy business and comes after the board’s in-principle approval during a meeting on March 10, 2023, communicated to stakeholders in a letter dated March 13, 2023.
On October 11, 2024, the board officially approved the sale, with a majority in favor, based on an independent fairness opinion from a global audit and consulting firm. The transaction is set to be executed on a going concern basis, meaning the business will continue to operate as usual under the new ownership.
The sale price of approximately Rs 17.82 billion is based on the valuation date of March 31, 2024. The final cash received and any gain or loss from the sale will be calculated based on the net book value as of the transaction’s closure date, along with other contractual terms.
The completion of this transaction is subject to shareholder and regulatory approvals.