Siemens Energy investors claim that the spin-off of wind units is premature

In response to an activist investor who called for a split-up, three major Siemens Energy shareholders said that the company should fix its?loss making wind turbine division first before considering a separation.

Comments reflect the company's support for its strategy to stabilise the business before considering any strategic options. Ananym Capital, an activist shareholder from the United States, disclosed its stake in Siemens Energy in December. It pushed for a spinoff of Siemens Gamesa's wind business, which it said could be worth $10billion. The management of the Group has said that the idea is good, but they want to restructure and are aiming for breakeven this year after a loss of 1.36 billion euros ($1.61 billion).

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The future of Siemens Games is expected to be discussed by shareholders at the annual general meeting of the?group on 26 February.

Tobias Klaholz is a fund -manager at DWS. According to LSEG, DWS holds 1.84% of Siemens Energy. He said that meeting the short term priority of stabilising and improving the profitability was essential.

It seems premature to consider a spin-off. "In the medium-term, however, it is definitely a good idea to review Siemens Gamesa," he added.

Ingo Speich, of Deka Investment which owns a?round 0.88% stake in the German power equipment maker, said that the restructuring of Siemens Gamesa should also be the main focus.

This could change quickly if new burdens are imposed. He said that the future of wind would need to be "reconsidered in a broader sense".

Charlie Penner said that Siemens Gamesa must be strengthened first before it can be spun out.

In an emailed comment, he stated that the board must be "prepared" to act as soon as Gamesa reaches profitability. Shareholders claimed that Siemens Energy's performance in the share price, which was boosted by the demand for infrastructure for artificial intelligence technology, provided management with some'shelter' from Siemens Gamesa’s ongoing problems.

Maria Mihaylova, manager of Union Investment Fund, said Siemens Gamesa is "an important part of the Siemens Energy turnaround story" and there is no need for a spun-off.

(source: Reuters)