Siemens Pakistan sells energy portfolio to Siemens Gamesa for Rs17.82bn

KARACHI: The board of directors of Siemens (Pakistan) Engineering Co Ltd (SIEM) has approved the sale of the company’s energy portfolio to Siemens Gamesa Renewable Energy (Pvt) Limited for approximately Rs17.82 billion (around $64 million).

In a notice issued to the Pakistan Stock Exchange (PSX) on Monday, the listed engineering conglomerate announced the decision made during its board meeting on October 11, 2024.

The notice stated, “The board has approved with a majority the sale and transfer of the company’s energy business segment on a going concern basis to a non-affiliated Siemens Energy Group entity, Siemens Gamesa Renewable Energy (Private) Limited (the buyer), for an aggregate consideration of approximately Rs17.82 billion as of the valuation date, March 31, 2024.”

Siemens Pakistan, primarily engaged in the execution of projects and the manufacturing, installation, and sale of electronic and electrical capital goods, reported that the net book value of its energy business as of the valuation date was approximately Rs17.61 billion (about $63.5 million).

The company clarified that the final cash received from the buyer and any potential gain or loss from the transaction would depend on the net book value as of the effective date (transaction closure date) and other contractual events, in accordance with the terms and conditions of the forthcoming agreement with the buyer.

The transaction’s closure is contingent upon receiving necessary approvals from shareholders and other regulatory bodies.Established in 1953 as a public limited company, Siemens Pakistan operates across several business segments, including power and gas, power generation services, energy management, digital factory, process industries and drives, and mobility. The sale marks a significant move for the company as it continues to streamline its operations in the evolving energy market.