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Siemens sends its energy business to the stock exchange - but there is a risk

2020-09-23T09:17:00.383Z

Munich - Hundreds of millions of shares in the new Siemens Energy will appear in the shareholders ' depots on Monday (September 28) , to which Siemens distributes 55 percent of its energy business . The Company Siemens Energy , which employs over 90,000 people and generates an annual turnover of currently 29 billion euros to but even without support, without the burden of the future parent company



Munich - Hundreds of millions of shares in the new

Siemens Energy

will

appear

in the

shareholders

'

depots on Monday (September 28)

, to which

Siemens distributes

55 percent of its

energy business

.

The Company

Siemens Energy

, which employs over 90,000 people and generates an annual turnover of currently 29 billion euros to but even without support, without the burden of the future

parent company

commented.

The

energy business

has a long tradition at

Siemens

, but there was a central problem within the group: with its long-term maintenance contracts and huge order backlog, it is robust against short-term fluctuations, but less profitable than, for example, the industrial business.

That made it difficult in the internal competition for investments.

As a farewell,

Energy

has once again received solid

financing

.

In the future, the new

energy boss Christian Bruch,

who took

up the position in the spring, can and must get

the money himself on the capital market, albeit at somewhat less favorable terms than Siemens because of a slightly poorer rating.

Siemens spin-off brings risks

The outgoing

Siemens boss Joe Kaeser

already warned at the extraordinary general meeting on the spin-off that certain savings and economies of scale would be lost.

And above all, Energy is active in a rapidly changing market that is also subject to political fluctuations.

A champion in the energy business with a unique breadth and depth - that's how you see

the new company

at

Siemens

.

But this breadth is also a challenge, because

although

the new

company

has

a strong wind energy business

with a two-thirds stake in

Siemens Gamesa

and is also active in the important permanent power transmission, it also supplies and maintains turbines and other technology for gas and gas especially coal-fired power plants.

It's about a market that will shrink and collapse over the coming decades.

With the # IPO of the Energy subsidiary, #Siemens wants to end the story of its undervaluation on the market.

However, a look into the past shows: The dissolution of the conglomerate does not necessarily lead to a relatively better rating. Https://t.co/kCIcQSHcLw pic.twitter.com/8yv92HmA5O

- Börsen-Zeitung (@boersenzeitung) September 22, 2020

Kaeser

, who

continues to accompany

Energy

as chairman of the supervisory board, has already given the board of directors to develop a plan to get out of coal - more responsibly than activists demanded and “more consistently than hesitants consider it necessary”.

One danger here: In the end, the plan is likely to receive criticism from both sides.

Bruch has already

negotiated

this with his plans for cost savings at

Energy

.

Among other things, he does not want to take over the agreement on site security at Siemens and to reduce sites.

The company argues that this should simplify production chains.

The union reacted far from amused and spoke of "hidden threats" on the home stretch to the split.

Siemens keeps part of Energy

Siemens will

not

split up completely

: The group will initially retain a good 35 percent of Energy itself, and just under 10 percent will go to the

Group's

pension fund

.

Both positions will shrink over time, but Siemens wants to remain an anchor shareholder with a stake of around 25 percent.

Given its size,

Siemens Energy could

in the foreseeable future become

part of the

* Dax

share index

alongside its old parent company

Siemens

.

Because this also applies to the other large

Siemens spin-off,

Healthineers

, three companies named Siemens could play in the top league of

Deutsche Börse

*

at the end of next year

.

But before that there is the

stock market launch

on Monday and that could be turbulent for technical reasons alone.

Every

Siemens shareholder

receives

one from

Siemens Energy for

every two

Siemens shares

.

But not everyone can or wants to keep the new papers.

For example, funds that track the Dax must sell the

share

* that is not currently in the Dax.

In Siemens circles, larger fluctuations are expected for at least two to three weeks.

Only then will the price of the new company really be able to say something about its value - and the combined

market value

of

Siemens

and

Siemens Energy

something about whether individual parts are really worth more as a whole.

* Merkur.de is part of the Germany-wide Ippen-Digital central network.

List of rubric lists: © dpa

Source: merkur

All news articles on 2020-09-23

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