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Siemens jumps after open offer at Rs 930/share

German parent stake to go up 75%.


Our Bureau Mumbai, Jan. 31

Siemens Ltd share price zoomed after its German parent – Siemens AG – on Monday made a voluntary open offer to acquire 6.68 crore shares or 19.82 per cent at a price of Rs 930 a share (payable in cash)on Monday.

The parent already owns 55.18 per cent stake in its Indian subsidiary and on successful completion of the open offer the stake would go up to 75 per cent. The offer opens on March 25 and closes on April 13. The face value of the Siemens stock is Rs 2.

In a statement to the stock exchanges, the acquirer (Siemens AG) said that the company wanted to consolidate its shareholding in the target company (Siemens Ltd).

In November last year, the company had vehemently denied reports that it wanted to delist from the Indian bourses. Market experts, however, see this move to consolidate its shareholding to finally culminate in delisting

The board of Siemens Ltd (on November 30 2009) had approved a scheme of amalgamation of another group company Siemens Healthcare Diagnostics with effect from October 1, 2009 pending approval from the Bombay High Court and the High Court of Gujarat.

The Bombay High Court approved the scheme of amalgamation on January 28 and in case the High Court of Gujarat approves the same within 15 days of the closure of the open offer, the offer size would stand enhanced to 6.70 crore equity shares.

The revised offer if applicable would constitute 19.7 per cent of the enhanced voting share capital of Siemens Ltd said the statement.

All shareholders of Siemens Healthcare Diagnostics would receive one share of Siemens Ltd for every two shares held.

On completion of the open offer, Siemens AG would hold 25.28 crore shares equity shares or 75 per cent share of votes in Siemens Ltd. The offer price is based on a return on net worth of 25 per cent, book value per share of Rs 97.27 and a trailing 12 month EPS of Rs 22.48 giving a PE multiple of 41.37 times on the offer price of Rs 930 said the statement.

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