Siemens Energy sees ‘action needed’ in 3 4.3 billion turbine unit takeover plan

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MADRID – Siemens Energy is still showing no signs of recovering at wind turbine maker Siemens Gamesa, its chief executive said Monday after launching a 4.05 billion euro ($ 4.29 billion) bid for a minority holding in the unit.

Siemens Energy announced a bid on Saturday after pressure from shareholders to increase shareholder participation in the Siemens Games from the 7% inherited after the spin-off from Siemens. Siemens Games said it would review the offer.

Shares of Siemens Gamers open for trading at around 17.7 euros between 0705 GMT in the Madrid market, up more than 6%, just below the offer price of 18.05 euros per share. Siemens Energy shares rose 2.7% in Frankfurt.

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Siemens Games, whose shares fell 20% from the start of the year until the offer, issued three profit warnings in less than a year due to product delays and operational problems.

“There are still no clear signs of a near-term recovery in the current setup,” said Christian Bruch, chief executive of Siemens Energy.

The bid price represents a premium of 27.7% over the May 17 unaffected closing price of the Spanish-listed stock and a 7.8% premium over Friday’s closing price.

Asked about the coastal turbine business that has caused particular headaches, Bruch told analysts in a conference call: “There is no reason why you can’t succeed in the coastal business if you fix your operational problems.”

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European turbine makers have increased losses in a highly competitive market as prices for metals and logistics have risen due to the Covid-19, import duties and Russia’s aggression in Ukraine.

“I don’t believe that the supply chain environment will become easier,” Bruch said.

He said pooling providers would “benefit from the double-digit billion-dollar collection we have as our best group.”

Working to produce hydrogen from wind energy, a technology seen as a promising way to reduce planet-warming carbon emissions from industry, could be more effective under the new setup, he said.

(1 = 0.9431 euros) (Reporting by Isla Beanie; Editing by Christian Smollinger and Edmund Blair)



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