Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Siemens investors push for simpler group structure to unlock value

Published 09/02/2023, 09:07
Updated 09/02/2023, 09:11
© Reuters. FILE PHOTO: The logo of German industrial group Siemens is seen in Zurich, Switzerland, January 30, 2019.  REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) - Siemens shareholders have called on the engineering company to simplify its structure by selling its stake in Siemens Energy and clarifying its position on Siemens Healthineers.

The trains-to-industrial-software group holds 35% of Siemens Energy and 75% of Siemens Healthineers, which manufacturers medical equipment, causing Siemens AG (ETR:SIEGn) to be valued less highly than if it was completely separate, the investors told Siemens' AGM on Thursday.

Siemens stock should outperform the MSCI World Industrials index over the long term, said Vera Diehl, portfolio manager at Union Investment, which holds a 1.6% stake in Siemens.

"In the medium term, this will require a sale of the stake in Siemens Energy and a separation from Siemens Healthineers to create a focused technology group without a conglomerate discount," Diehl said in comments prepared for the AGM.

"Portfolio managers already buy Healthineers themselves when they need it. We demand full concentration on the story as a focused technology group,"

The markets does not see Siemens as positively as it should given its strong performance, said Ingo Speich, head of Sustainability and Corporate Governance at Deka Group, a fund manager owned by Germany's unlisted savings banks.

"The conglomerate structure must be reduced and the Group streamlined," said Speich whose fund holds a 0.9% stake.

Although it was clear Siemens want to sell its Siemens Energy investment, it should hang on to the stake for the time being to help the affiliate carry out a planned capital increase "without pressure".

"But don't miss the right time to exit again afterwards," Speich added.

© Reuters. FILE PHOTO: The logo of German industrial group Siemens is seen in Zurich, Switzerland, January 30, 2019.  REUTERS/Arnd Wiegmann/File Photo

Siemens CFO Ralf Thomas said on Thursday that Siemens remained committed to reducing its stake in Siemens Energy, but wanted to do so in a measured way.

"We don't want in any way to contribute to any additional market turbulence," he told reporters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.