siemens-group-restructuring-delisting

Siemens Limited (Siemens) in the last couple of years done many restructuring with its group entities. It includes multiple mergers of its WoS and slump sale of its businesses to WoS. It is pertinent to note that delisting of the company requires compliance of various SEBI regulations including delisting guidelines (which provides for price discovery mechanism) but Slump sale to its WoS does not require any permission from the regulators. So it becomes convenient to delist business one by one through this process.
In last ten years, Siemens purchased and  sold various of its businesses between its group entities. It includes six slump sale/100% equity transfer to Siemens Germany . it is interesting to note some of them were acquired or mere earlier with listed companies few years back . The major restructuring done by Siemens is its healthcare business.
In 2009, Board of Directors approved the amalgamation of Siemens Healthcare Diagnostics Limited (SHDL) with the Company. SHDL was based at Baroda and was engaged in manufacturing, marketing and Customer Support of Medical Diagnostic Reagents and Instrument etc. SHDL was listed on the Bombay Stock Exchange Ltd. The Board had recommended a share exchange ratio of 2:1 i.e. two equity shares of fully paid-up of the Siemens for every 1 Equity Share of SHDL i.e. value of approximately INR 300 crore. At that time, Siemens already was in healthcare vertical with the turnover of INR 543 crore.
In 2016, Siemens sold Healthcare Undertaking, as a going concern on slump sale basis, for a cash consideration of INR 3050 crore, to Siemens Healthcare Private Limited (SHPL), a subsidiary of Siemens AG, Germany.
After the sale of Healthcare Business, Siemens gave a dividend of INR 27.5 per share. considering 75% stake in Siemens is held by Siemens AG, approximately INR 750 crore received by the Siemens AG. Further, Siemens AG also continued to hold 21, 54,416 shares which it got in course of merger of SHDL into Siemens.
It is interesting to note that a couple of weeks before, Siemens AG announced the plan to list its $ 15 bn worldwide healthcare business. Though details are not yet announced even it is not clear whether Siemens will list its Indian healthcare arm separately or not.

 

If you like the article share it with your colleagues.

Post a comment