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Siemens ups stake in SGRE as Iberdrola exits

Siemens has acquired Iberdrola’s 8.1% stake in turbine manufacturer Siemens Gamesa Renewable Energy (SGRE).

Siemens' acquisition of Iberdrola's stake in SGRE means it will have more than two-thirds of the voting rights in the manufacturer
Siemens' acquisition of Iberdrola's stake in SGRE means it will have more than two-thirds of the voting rights in the manufacturer

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With Iberdrola divesting from SGRE, Gamesa will now own a 32.9% stake in the manufacturer, with Siemens holding the majority 67.1% stake in the company, which merged in 2017

Siemens will place all its shares in SGRE within its new Siemens Energy company. The new unit will incorporate its gas and power business and then be spun off in a public listing.

The companies also signed a cooperation agreement, by which Iberdrola will grant Siemens and SGRE exclusive negotiation rights for wind power and distribution grid projects “for a limited period of time”.

Siemens acquired Iberdrola’s 8.07% stake for €20/share — a 32% premium on top of SGRE’s average share price for the last 30 trading days. The transaction will cost around €1.1 billion and be funded from its own resources.

SGRE stock price opened at €15.86/share on 5 February, up slightly from the €15.76/share price at the previous close. 

An Iberdrola spokesman told Windpower Monthly: "The divestment is part of the company’s asset rotation strategy. Also, with Siemens plans to spin off its energy unit and merge it with Siemens Gamesa, our stake in the resulting company would have been greatly diluted thereby losing its strategic importance."

A Siemens spokesman explained that the company believes SGRE can further increase its potential and value. The company stated: "Siemens expects that additional annual savings of up to €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 €900 million."

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