Siemens AG's Acquisition of 18% Stake in Siemens Limited
Siemens AG buys 18% stake in Siemens Limited from Siemens Energy
Siemens Aktiengesellschaft (Siemens AG), a prominent German entity, has made a significant move in acquiring an 18% stake in Siemens Limited from Siemens Energy Holding B.V. for a substantial sum of EUR 2.1 billion (around INR 18,700 crores), with legal counsel from Khaitan & Co.
This strategic transaction has resulted in Siemens AG's ownership in the Company rising from 51% to 69%, while Siemens Energy's share has decreased from 24% to 6%. Importantly, both Siemens AG and Siemens Energy will remain active promoters of Siemens Limited post-transaction.
The acquisition aligns with Siemens AG's efforts to ensure the stability of Siemens Energy, emphasizing their commitment to streamlining the business operations of Siemens' Indian subsidiary.
Khaitan & Co played a pivotal role in facilitating this acquisition, providing legal guidance on various crucial aspects including the transaction's structure, compliance with intricate Indian securities laws encompassing takeover and insider trading regulations, and the preparation of essential documents like the share purchase agreement.
Niren Patel, Arindam Ghosh, Shashank Patil, and Shreya Mukherjee from Khaitan & Co played instrumental roles in advising Siemens AG and Siemens Limited throughout this transaction, ensuring comprehensive legal counsel.
This acquisition reflects Siemens AG's strategic maneuvering to strengthen its position in Siemens Limited, signaling a significant development in the dynamics of these interconnected entities within the global market.