The Siemens Mechanical Drives business will now be operated in the market by the Flender Drives Private Limited as the Board of Directors of Siemens Limited has approved the sale and transfer of its Mechanical Drives (MD) business for a consideration of Rs. 4,400 million (Indian Rupees Four Thousand Four Hundred million) to Flender Drives Private Limited, subject to adjustment for the change in net current assets and capital expenditure, subsequent to June 30, 2020 up to the date of actual transfer of the MD business.
Mr Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited, said, “Potential growth in this business will require substantial Capex and moreover, there are no synergies with the existing businesses of Siemens Limited. Keeping the interests of the shareholders in mind, the Board of Siemens Limited has approved the sale of this business to Siemens AG which has also announced their intention to publicly list this business via a spin-off.”
- The consideration has been arrived at on the basis of an independent valuation, recommended by the Committee of Directors and the Audit committee.
- The sale and transfer of MD business is as going concern and on a slump sale basis, with effect from January 1, 2021.
- The same is subject to receipt of requisite statutory and regulatory approvals, as applicable.
- The MD business within Siemens Limited achieved a Revenue of Rs. 6,838 million for FY 2019 and had an operating loss of Rs. 553 million.
The Flender GmbH, a Siemens Company is one of the world’s leading providers of components for mechanical drive technology. Its product range embraces a broad portfolio of gear units and clutches, drive applications and the associated services. The range of sectors it serves includes key industries like wind power, cement production, marine shipping, and conveyor and lifting technology. Flender products and services combine the latest technology with the highest quality standards, and have reliably been transmitting power in the best possible way for decades.
About Siemens AG:
Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 170 years. The company is active around the globe, focusing on the areas of intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. Through the separately managed companies Siemens Energy, the global energy business of Siemens, and Siemens Mobility, a leading supplier of smart mobility solutions for rail and road transport, Siemens is shaping the energy systems of today and tomorrow as well as the world market for passenger and freight services
Source: Siemens-Press Release | Image Credit: Siemens