Image credit: Siemens Energy
German energy company Siemens Energy is considering making a bid to purchase the remaining third of Siemens Gamesa, in an effort to ease the financial and operational woes.
Siemens Energy currently owns 67% of Siemens Gamesa shares. The outstanding 33% stake is reportedly valued at $3 billion and the cash offer could be made by Siemens Energy by the start of the European Summer.
“Management is considering a cash tender offer for all outstanding shares in Siemens Gamesa Renewable Energy S.A. with the intention to delist,” Siemens Energy said in a statement.
“The outcome of this consideration is open. No decision has been made and there is no certainty that a transaction will materialise.”
The news of the potential takeover has resulted in Siemens Energy shares trading 3.2% higher at EUR17.34 ($18.26) a share on 18 May 2022. Siemens Gamesa’s shares were up 11% after which Spain’s National Securities Market Commission (Comisión Nacional del Mercado de Valores) suspended trading of Siemens Gamesa shares.
Siemens Gamesa has been struggling with financial losses in the face of supply chain constraints, high commodity prices, logistics challenges leading to delays and higher costs and commercial volatility in the offshore segment.
Several leadership changes have taken place recently to provide the strategic refresh needed to bolster performance, including the appointment of Jochen Eickholt as CEO and Tim Dawidowsky as chief operating officer.