Siemens to Sell $2.6 Billion Stake in Siemens Energy to Fund Altair Acquisition

Siemens AG plans to sell its $2.6 billion stake in Siemens Energy AG in the coming months. This sale is part of the company's strategy to acquire software manufacturer Altair Engineering Inc. for $10 billion.

According to Chief Financial Officer Ralf Thomas, Siemens intends to divest approximately 6% of its 17% stake in Siemens Energy by the end of September. Siemens had previously spun off the turbine manufacturer in 2020.

The value of Siemens Energy shares has increased more than fourfold this year, attributed to positive expectations regarding the resolution of ongoing issues in the Gamesa wind turbine unit. Last month, the manufacturer raised its mid-term targets due to rising demand for products that power data centers.

When Siemens announced the acquisition of Altair in October, it specified that the deal would be financed through the sale of stakes in publicly traded companies and the proceeds from recent divestitures, which also include the sale of its Innomotics heavy-duty motors operations for €3.5 billion ($3.7 billion).

Thomas mentioned that Siemens ultimately plans to sell its entire stake in Siemens Energy, but they are not in a hurry. The CFO also noted earlier this year that Siemens considered selling 5% of its approximately 75% stake in Siemens Healthineers AG.

This could bring in about €3 billion ($3.2 billion) based on current market prices. As of Tuesday's close, the 6% stake in Siemens Energy was valued at approximately €2.5 billion ($2.6 billion).