The Board of Directors of Siemens (Pakistan) Engineering has approved the sale and transfer of the company’s energy business segment on a going concern basis to a non-affiliated Siemens Energy Group Entity i.e. Siemens Gamesa Renewable Energy (Private) Limited.
The company shared this development with the Pakistan Stock Exchange (PSX) through a notice on Monday in accordance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of PSX Regulations.
Siemens Pakistan said that it sold energy segment for an aggregate consideration of approximately Rs 17.82 billion as at the valuation date i.e. March 31, 2024.
The net book value of the energy business as at valuation date was approximately Rs 17.61 billion.
The company said that this is in line with the spin-off of the energy business by Siemens AG (Parent Company) in 2020, pursuant to an in-principle approval of the Board of Directors in their meeting held on March 10, 2023 and communicated to the members vide letter no. CS/Ext/2023/189 dated March 13, 2023; and taking into consideration the independent fairness opinion rendered by a global audit and consulting firm.
The determination of cash to be received from the buyer and gain / loss on the transaction is subject to computation based on net book value as of effective date and certain other contractual subsequent events in accordance with the terms and conditions of the agreement to be executed with the buyer.
The closure of the transaction shall remain subject to shareholders’ and other regulatory approvals, the company said in its notice.
