The Board of Directors of Siemens Ltd. has approved the sale and transfer of low voltage motors and geared motors businesses including related customer service business to Siemens Large Drives India Private Ltd., an entity wholly owned by Siemens AG, for ₹2,200 crore with effect from October 1, 2023.
The board has also decided to consider the distribution of 100% of the sale consideration as reduced by applicable capital gains tax, and any other applicable taxes, if any, on the transaction, as a special dividend after completion of the proposed transaction.
“This transaction is consequent to the intent of Siemens AG to carve out the low voltage motors and geared motors business among others globally into a legally separate company and is based on Siemens AG’s decision to form Innomotics, an integrated provider of motors and large drives,” Siemens Ltd. said in a statement.
Effective July 1, 2023, the carve-out in Germany will be completed and Innomotics GmbH (Germany) will operate as a legally separate and independent company within the Siemens Group. Siemens AG indicated in a second step to diligently review options regarding the best future ownership of Innomotics. Such options include a public listing as well as a combination with a strategic partner or long-term oriented financial investor.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd., said, “Siemens Ltd. is focused on further strengthening its position as a leading technology company. We will continue to consolidate our business along high-growth areas that have synergies with the rest of the businesses.”
“This will enable the company to optimise its portfolio as a strategic lever, creating value and cash for Siemens,” he added.
Meanwhile, Siemens Ltd. has signed an agreement to acquire the Electric Vehicle (EV) division of Mumbai-based Mass-Tech Controls Private Ltd. to address the growing demand for EV charging infrastructure in India for ₹38 crore on a cash-free, debt-free basis.
The division is engaged in design, engineering and manufacturing of a wide range of AC chargers, and 30 to 300kW capacity DC chargers for various end applications for EVs.
Post the acquisition, the EV division of Mass-Tech Controls will be fully integrated into the e-Mobility Business Unit of the Smart Infrastructure Business, Siemens Ltd.
“The acquisition will help us to accelerate our growth plans in the e-mobility business segment and will expand our portfolio of sustainability solutions for our customers,” Mr. Mathur said.
For all the latest business News Click Here
