Top Siemens Energy investors: Wind unit spin-off premature for now

Three of the largest Siemens Energy shareholders said that the company should fix its 'loss-making... wind turbine division, before considering a spin-off. They were responding to an activist investor who was pushing for a split-up.

The comments show support for the current strategy of the company to stabilise the business and then look at strategic options.

Ananym Capital, an activist shareholder in the United States, disclosed its stake in Siemens Energy in December. It pushed for a spinoff of Siemens Gamesa's wind business, saying that it could be worth up to $10 billion in the future.

The group management said that the idea was good, but they wanted to restructure?the business first. They are aiming for breakeven this year after a 1,36 billion euro loss ($1.61 billion in 2025).

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Shareholders are expected to debate the fate of Siemens Gamesa at their annual general meeting, which will take place on Friday, February 26.

Tobias Klaholz is a fund manager for DWS. According to LSEG, DWS holds 1.84% of Siemens Energy. He said that it was important to meet the short-term goal of stabilising and improving the profitability.

It seems therefore too early to consider a possible 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 focus should also be on the restructuring of Siemens Gamesa.

This could change quickly if new burdens are imposed. He said that the future of wind division would need to be re-evaluated more widely.

Shareholders said that Siemens Gamesa’s ongoing problems were a result of the share price performance of Siemens Energy, which was boosted by a demand for infrastructure needed to power artificial-intelligence technology.

Maria Mihaylova, manager of Union Investment Fund, said that Siemens Gamesa is "an important part of the turnaround of Siemens Energy", and there was currently no need for any spin-off. Reporting by Christoph Steitz, Editing by Joe Bavier. $1 = 0.8430 Euros

(source: Reuters)