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Siemens AG announces public offer to increase stake in Siemens Ltd.
Siemens AG intends to increase its stake in its publicly listed Indian company Siemens Ltd.
from the current 55% to 75%. To this end, the parent company will offer public shareholders
of Siemens Ltd. `930 per share. In case of full acceptance of the offer, the investment will
total roughly €1bn. Siemens AG is expanding its stake with the aim of further developing its
business in India.
The offer from Siemens is 28% above the closing price of January 28, 2011, of `728 and
20% above the minimum offer price of `772 required by Indian regulations. Pending
regulatory approvals, the offer is expected to open on March 25, 2011, and close on April
13, 2011.
With the parent company holding ~55% of the existing equity, the open offer for 20% of
additional equity would imply an acceptance ratio of ~44%, presuming that all nonpromoter
shareholders tender their shares. Domestic institutions, including LIC, hold ~23%
of the equity in Siemens Ltd. LIC’s holding in Siemens Ltd. is ~13.7%; and in case LIC does
not participate in the open offer, the acceptance ratio may further improve to ~63%.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Siemens AG announces public offer to increase stake in Siemens Ltd.
Siemens AG intends to increase its stake in its publicly listed Indian company Siemens Ltd.
from the current 55% to 75%. To this end, the parent company will offer public shareholders
of Siemens Ltd. `930 per share. In case of full acceptance of the offer, the investment will
total roughly €1bn. Siemens AG is expanding its stake with the aim of further developing its
business in India.
The offer from Siemens is 28% above the closing price of January 28, 2011, of `728 and
20% above the minimum offer price of `772 required by Indian regulations. Pending
regulatory approvals, the offer is expected to open on March 25, 2011, and close on April
13, 2011.
With the parent company holding ~55% of the existing equity, the open offer for 20% of
additional equity would imply an acceptance ratio of ~44%, presuming that all nonpromoter
shareholders tender their shares. Domestic institutions, including LIC, hold ~23%
of the equity in Siemens Ltd. LIC’s holding in Siemens Ltd. is ~13.7%; and in case LIC does
not participate in the open offer, the acceptance ratio may further improve to ~63%.
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