Siemens says it will take bigger stake in Indian unit

31st January 2011, Comments 0 comments

The German industrial group Siemens said on Monday that it planned to raise its stake in its Indian-listed subsidiary from 55 percent to 75 percent at a cost of around one billion euros ($1.36 billion).

Siemens said it would offer shareholders 930 rupees (14.85 euros, $20.24) per share, a premium of 28 percent above their closing price on Friday and 20 percent more than the minimum required by Indian law, a statement said.

"In the case of full acceptance of the offer, the investment will total roughly one billion euros," it added.

The German group said its offer was expected to run from March 25 to April 13 and explained that it had decided to increase the holding "with the aim of further developing its business in India."

Siemens Ltd. employs 7,500 people in India and posted annual sales of 1.5 billion euros, a small fraction of the group's total of 76 billion.

© 2011 AFP

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