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Siemens Energy to Debut on Stock Market Monday — Listing Preview

   By Giulia Petroni 
 

Siemens Energy AG is set to debut on the Frankfurt stock exchange on Monday, becoming an independent entity as part of an overhaul at technology-and-engineering giant Siemens AG.

Here's what you need to know.

 

--VALUATION: Berenberg estimates the enterprise value of the German energy company at around 19 billion euros ($22.15 billion), while Reuters reports consensus estimating the value at between EUR21 billion and EUR22 billion, according to a source close to the company--which would correspond to a share price of EUR28.90 to EUR30.28.

 

--SHAREHOLDERS: Siemens AG will spin off 55% of its energy business to shareholders, which includes its gas and power operations as well as its 67% stake in wind-turbine maker Siemens Gamesa Renewable Energy SA. The conglomerate will retain a 35.1% stake in Siemens Energy, with the rest controlled by its pension unit, and likely further reduce its stake over the next 12 to 18 months.

 

--STRATEGY: Earlier this month, the company said it aims to increase profitability and focus on portfolio adjustments while shifting toward sustainability. Management aims to achieve an adjusted earnings before interest, taxes and amortization margin before special items of between 6.5% and 8.5% for fiscal 2023, and is evaluating initiatives that target more than EUR300 million of annual gross cost savings. These add up to the already-announced EUR1 billion savings target until fiscal 2023, compared to fiscal 2018 levels.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

September 25, 2020 12:34 ET (16:34 GMT)

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