New Delhi: The Board of Directors of Siemens Limited 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
Limited, an entity wholly owned by Siemens AG, for a consideration of INR 2,200 crore with effect from October 1,2023.
The transaction is subject to fulfilment of conditions precedents agreed between the parties, including receipt of
requisite shareholders, statutory and regulatory approvals, as applicable.
The Board of Directors 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, at the first Board Meeting after completion of the proposed transaction.
The valuation was done by an external independent valuer. In addition, the Company also obtained a fairness opinion from a Category-I Merchant Banker. The consideration for the proposed transaction, recommended by the Audit committee, is based on the valuation undertaken by the independent valuer.
For FY 2022, the Business recorded a Revenue from Operations of INR 1,061 crore and Profit from Operations of INR 132 crore equivalent to around 12.5% of Revenue. This represents around 7% of the Company’s Revenue from Operations and around 9% of the Company’s Profit from Operations.
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. Effective 1st July 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 Limited, said, “Siemens Limited 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 optimize its portfolio as a strategic lever, creating value and cash for Siemens.”
