Siemens is holding a virtual Extraordinary Shareholders’ Meeting today to vote on proposals for spinning off its energy division into a separate company.
The proposal to approve the spin-off and transfer agreement concluded on 22 May is the only item on the meeting agenda.
Shareholders are to automatically receive one share of Siemens Energy for every two shares of Siemens. Fifty-five percent will be spun off to shareholders.
Siemens will hold a 35.1% stake, and Siemens Pension-Trust will hold an additional 9.9% stake.
Siemens will no longer exercise a controlling influence, nor will it fully consolidate the new company.
Depending on the strategic and operational development of the two companies, Siemens intends to further reduce its stake in Siemens Energy significantly within 12 to 18 months.
The initial listing is to take place on 28 September 2020.
The new Siemens Energy business has about 91,000 employees worldwide. It holds a 67% stake in Siemens Gamesa and also makes gas turbines, steam turbines, generators, transformers and compressors.
Due to the restrictions imposed on public events by the coronavirus crisis, the shareholders’ meeting will be held in a virtual-only format.
“The Extraordinary Shareholders’ Meeting is the final decisive step for the Siemens Energy spin-off, and it is a historic moment,” said Joe Kaeser, Siemens president and CEO.
He added: “Following the highly successful initial public offering of our healthcare business, we’re laying the cornerstone today for two more focused Siemens companies.
As independent units within the Siemens ecosystem, the companies will be able to operate in the future with far greater speed, flexibility and success.
“Therefore, we assume that these measures will strengthen both companies over the long term and enable a significant increase in their value.”
To ensure complete transparency, a livestream at www.siemens.com/agm-service will provide shareholders and their proxies with audio and video coverage of the entire event via the Internet.
Siemens supervisory board chairman Jim Hagemann Snabe said: “The spin-off is the right strategic decision at the right time.
“In the future, both companies will be even better able to address global megatrends: the future Siemens will rigorously focus on the areas of automation, digitalisation, intelligent infrastructure and mobility.
“Siemens Energy is a trailblazer in shaping the global transformation of energy systems in the transition to renewable energies.”
According to the combined financial statements of Siemens Energy, as of 30 September 2019 the company generated revenue of about €29bn in fiscal 2019.