Siemens AG to buy 18% stake in Indian joint venture for $2.28 billion

In a proposed restructuring of equity holding, an 18 per cent stake in India-listed Siemens is likely to change hands between promoter companies — Siemens AG and Siemens Energy — with the former to pay the latter €2.1 billion ($2.28 billion) for the stake.

Part of the agreement includes a proposal to demerger of the energy division of the Indian arm into a separate listed entity.

The transfer of cash is expected to bring partial relief to the energy entity, which is facing losses in its wind turbine business. The deal, Siemens AG said, has been agreed at a discount of 15 per cent on the five trading days’ volume-weighted average price before the day of signing the agreement.