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Siemens AG Shareholders To Vote On Spin Off Of 55% Stake In Siemens Energy

Siemens AG (SIEGY.PK,SMAWF) announced Thursday that its shareholders will vote on its proposal to spin off 55 percent of Siemens Energy to them. Siemens shareholders would automatically receive one share of Siemens Energy AG for every two shares of Siemens AG.

The shareholders will vote on the spin-off at a virtual Extraordinary Shareholders' Meeting today, which is the final decisive step for the spin-off. The only meeting agenda is the proposal to approve the Spin-off and Transfer Agreement that Siemens AG and Siemens Energy AG concluded on May 22.

Following the planned spin off, Siemens AG will hold a 35.1 percent stake, and Siemens Pension-Trust e.V. will hold an additional 9.9 percent stake. Furthermore, Siemens AG will no longer exercise a controlling influence, nor will it fully consolidate the new company.

The company added that it intends to further reduce its stake in Siemens Energy significantly within 12 to 18 months, depending on the strategic and operational development of the two companies. The initial listing is to take place on September 28.

Joe Kaeser, President and CEO of Siemens AG, said, "Following the highly successful initial public offering of our healthcare business, we're laying the cornerstone today for two more focused Siemens companies. As independent units within the Siemens Ecosystem, the companies will be able to operate in the future with far greater speed, flexibility and success. Therefore, we assume that these measures will strengthen both companies over the long term and enable a significant increase in their value."

The future Siemens AG will focus on the areas of automation, digitalization, intelligent infrastructure and mobility. Siemens Energy's products include gas turbines, steam turbines, generators, transformers and compressors. The new Siemens Energy has about 91,000 employees worldwide as of March 31, and generated revenue of about 29 billion euros in fiscal 2019.

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