Siemens AG will acquire all the shares of Siemens Gamesa Renewable Energy (SGRE) held by Iberdrola after the supervisory board approved the purchase
Siemens AG will acquire all the shares of Siemens Gamesa Renewable Energy (SGRE) held by Spanish utility Iberdrola S.A. At its regular meeting, the Supervisory Board of Siemens AG has approved the purchase of Iberdrola’s 8.1 percent stake in SGRE.
The purchase price is EUR 20 per share, which corresponds to a 32 percent 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 have signed a cooperation agreement that covers certain projects for wind power generation and for improving the distribution grid. For these projects, Iberdrola, as a customer of SGRE and Siemens, will grant these companies exclusive negotiation rights for a limited period of time. Furthermore, Siemens expects that additional annual savings of up to EUR 100 million can be realised by unwinding the shareholder agreement and through intensified cooperation between Siemens and 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. This move will create a pure-play energy company with a unique value proposition in the area of conventional and renewable energies. Siemens Energy, which will then hold about 67 percent of the voting rights at SGRE.
“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. 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,” said Joe Kaeser, president and CEO of Siemens AG.