Deka, an investor, says Siemens Energy shouldn't'squander" its wind division

Siemens Energy shouldn't sell its wind division for less than?value. A top-20 shareholder made the statement on Thursday, at the annual general meeting of the group, where the future if the struggling business is a major topic.

After U.S. activist investor Ananym called for a review of Siemens Gamesa in December, and a spin-off to boost shareholder value, the future of Siemens Gamesa has become more apparent.

Siemens Energy's leadership is open to the idea in principle, but wants to stabilise its business first. It made a 1,36 billion euro ($1.61billion) operating loss last year and expects to break even by 2026.

Investors in Germany support the strategy of repairing the business first before considering strategic measures.

Ingo Speich, Deka Investment, said: "To be clear: selling Gamesa below its value at this time would be the same as dividing it." "Do not squander away Gamesa."

Ananym stated in a press release that it recently had "very constructive discussions" with Siemens Energy leadership. It added: "We're largely in agreement about our thinking on Siemens Gamesa".

Ananym stated that even if Siemens Gamesa was able to be stabilized, it would not reach the margin targets set by the parent.

Siemens Energy wants to achieve double-digit profit margins for all of its businesses by 2028, which is much higher than the 3-5% profit target Siemens Gamesa? has set.

Ananym stated that keeping the wind business, even after it is stabilized, will likely create a drag on the total company value and make it difficult for Siemens Gamesa to compete for investment capital with the company's high-returning businesses.

The company reiterated that a spin-off could generate significant shareholder value.

(source: Reuters)