Siemens AG is acquiring all Iberdrola’s shares in Siemens Gamesa Renewable Energy (SGRE).
At its regular meeting held on 4 February, the Supervisory Board of Siemens AG approved the purchase of Iberdrola’s 8.1% stake in SGRE.
The purchase price is EUR 20 per share, which corresponds to a 32% premium on top of the average SGRE share price for the last 30 trading days. Siemens will pay the total amount of EUR 1.1 billion from its own resources.
In addition, Iberdrola, Siemens and SGRE signed a cooperation agreement that covers certain wind power projects and for improving the distribution grid.
For these projects, Iberdrola, as a customer of Siemens Gamesa and Siemens, will grant these companies exclusive negotiation rights for a limited period of time.
Siemens expects that additional annual savings of up to EUR 100 million can be realized by unwinding the shareholder agreement and through intensified cooperation with SGRE, resulting in a net present value of about EUR 900 million.
As part of the spin-off and subsequent public listing of its Gas and Power business, Siemens will contribute all its shares in SGRE to the new Siemens Energy company.
Siemens Energy, which will then hold about 67% of the voting rights at SGRE, will have a two-thirds majority at the company’s annual general meeting. No mandatory takeover offer to SGRE’s external shareholders is planned.
“Way before anyone else, Siemens and Iberdrola had taken the first step to a necessary consolidation in the sector. We have created a leading and robust supplier of renewable energy and believe, that SGRE still has considerable potential to grow and create significant value,” said Joe Kaeser , President and CEO of Siemens AG.
“SGRE is a vital cornerstone in the new Siemens Energy portfolio in order to shape the necessary energy transition from conventional to renewable energy. Time has come to take this mission to the next step.”