The board of directors of Siemens Ltd has approved the immediate incorporation of a wholly-owned subsidiary to house the energy business of Siemens Ltd, if and whenever the potential demerger of the energy business takes place.
In a stock exchange communication, Siemens Ltd said that certain promoters of the company, namely Siemens Aktiengesellschaft, Siemens International Holding BV, Siemens Energy Holding BV and Siemens Energy Aktiengesellschaft, have each requested the board of directors of Siemens to consider, evaluate and thereafter start taking exploratory steps towards a potential demerger of the company’s energy business into a separate entity.
The board of directors of Siemens Ltd, at its meeting held on December 18, 2023, took note of the above and authorized the company’s management to commence exploratory steps as may be required to examine a potential demerger of the company’s energy business.
The potential demerger shall be subject to further consideration and deliberation to be carried out by the board of directors, and committee(s) thereof, at the relevant point in time and the procedures to be followed by the company as per applicable laws, the communication noted.
The board of directors has approved the immediate incorporation of a wholly-owned subsidiary in Mumbai on the basis that the proposed subsidiary may be required if and when the board of directors of Siemens decides to implement the aforesaid demerger.
The stock exchange communication added that details of proposed subsidiary will be communicated once it is incorporated.
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Featured photograph showing the Kalwa factory of Siemens Ltd in Maharashtra is for representation only
