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Energy business on the stock exchange: stress test for Siemens Energy


Siemens wind turbines in California
Image: Bloomberg

It is the largest spin-off that has taken place on the German stock exchanges to date: Siemens is separating from its energy business. It gets exciting when millions of shares change hands.

S.iemens shareholders do not get Siemens Energy for free. Fairy tales like this go around when corporations split off businesses and put them on the stock exchange; or – as it is called in technical jargon – make a spin-off. And whoever doesn’t want to believe that, will be taught otherwise on September 28th. When the bell rings for the new shares of the energy technology company in Frankfurt, the Siemens share price will suddenly see a dip.

September 25th is the day on which the Group’s energy business with power plants, wind energy, oil and gas exploration facilities and power transmission is formally separated from Siemens AG. On September 28, their shareholders will receive a new Siemens Energy for two Siemens shares in their depot. With the first determined energy price, there is also a discount on the Siemens AG share, just as the dividend distributed is deducted on the day after the Annual General Meeting. Finally, the Group’s assets have been reduced by the energy activities.

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