Siemens Energy will buy the shares of Siemens Gamesa Renewable Energy, which it does not already own, a long-awaited step in its efforts to reverse the problematic situation in the Spanish wind turbine manufacturer, as reported by Bloomberg.
Siemens Energy has agreed to offer 18.05 euros per share of Siemens Gamesa for the full acquisition of the company, according to a company announcement. Siemens Energy already owns 67% of the company, which currently has a market capitalization of 11.4 billion euros, according to data compiled by Bloomberg.
Gamesa shares rose more than 18% after Bloomberg reported on Wednesday that Siemens Energy was considering a full takeover with a view to delisting the company, a plan the company later confirmed.
Rumors of a full takeover have been raging for months. Project delays and cost overruns have increased at Siemens Gamesa, bringing several warnings about the Spanish company’s profits.
These issues have undermined investor confidence and created the prospect that Siemens Energy could address these issues.
Siemens Energy’s offer represents only a small premium compared to Friday’s closing price of € 16,745 per share of Siemens Gamesa.
The core of Siemens Gamesa’s problems lies in its land port, where the company faces difficulties in scaling up its new turbine model, called the 5.X platform.
Source: Capital
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