(Bloomberg) – Siemens Energy AG will offer to buy shares in Siemens Gamesa Renewable Energy SA, which it does not already own, a long-awaited move to turn around the troubled Spanish wind-turbine manufacturer.
Siemens Energy has agreed to offer 18.05 euros per share to Siemens Gamesa for a full acquisition of the company, it said on Saturday. According to data compiled by Bloomberg, Siemens Energy already owns 67% of the firm, which currently has a market value of 11.4 billion euros ($ 12 billion).
Bloomberg reported Wednesday that Siemens Energy is working on a complete takeover to list the firm – a plan the company later confirmed.
Rumors of a complete takeover have been circulating for months. Many profit warnings and guidelines have been suspended at Siemens Games due to project delays and cost overruns because operations are bleeding cash. The problems are so dramatic that they have eroded investor confidence and created the possibility that Siemens Energy could grab hold of the unit to solve the problems.
Siemens Energy Slides in Mounting Loss in Wind-Turbine Units
Siemens Energy’s bid offered only a small premium compared to Friday’s closing price of .7 16,745 per share of Siemens Games. According to market rules, this is above the target weighted three-month average share price, which is about 16.50 euros.
Turbine manufacturers are facing rising costs for power, steel and copper, as well as supply-chain disruptions that are reducing profits. At the root of the Siemens gamer’s problem is its coastal segment, where the company has had difficulty scaling its new turbine model, known as the 5.X platform.
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