Siemens Energy plans to keep the headquarters of Siemens Gamesa in Zamudio after the takeover bid

The parent company plans to promote an "effective structure for the business" of Siemens Gamesa

MADRID, 23 May. (EUROPA PRESS) -

Siemens Energy, which has made a voluntary cash takeover bid (OPA) on the 32.9% that it does not control of Siemens Gamesa Renewable Energy (SGRE) for 3,722 million euros, has assured this Monday that it is not among its plans change the location of the headquarters of the latter, located in Zamudio (Vizcaya).

"I do not foresee any changes, for now. We are committed to operations in Spain and the Basque Country", underlined the CEO of Siemens Energy, Christian Bruch, after being asked about the possibility of a change of headquarters.

In a press conference to detail aspects of the takeover bid for Siemens Gamesa, Bruch also stressed that although a change of headquarters is not on his agenda, he does consider an "effective structure for the business" necessary with which to serve the customer correctly and pursue "excellence".

Beyond Siemens Gamesa's operational headquarters in Zamudio, Bruch has also ensured that, in the event that the takeover bid goes ahead, taxes will continue to be paid "in the countries in which it operates", so the fiscal headquarters will continue to be being where "profits are made". "We are committed to our footprint in Spain and to maintaining our presence," Bruch deepened.

JOB POSITIONS

Likewise, he has indicated that they do not have a plan to "affect the personnel" of Siemens Gamesa, an issue that worries both unions and the Government of the Basque Country.

"We see classic project management problems, it is not so much specific to the sector. We do not have a plan to affect personnel, we have a joint strategy and we want to support them so that they can grow again," Bruch asserted.

In that sense, both the Federation of Industry, Construction and Agro (Fica) of the UGT and the Federation of Industry of CCOO have shown this Monday their concern about the employment of Siemens Gamesa after the takeover bid and the Minister of Economic Development, Sustainability and Environment Environment of the Basque Government, Arantxa Tapia, has affirmed that once all the details are known, the regional Executive will work to "guarantee" jobs at Siemens Gamesa and to continue working with Basque suppliers.

RULES OUT SELLING THE ONSHORE WIND DIVISION

The CEO of Siemens Energy has also ruled out a possible sale of Siemens Gamesa's onshore wind power division as, he argued, it is a "key base" and a "bigger" market than the offshore business. "But we have to manage it better", he has nuanced it.

"At this time I see no reason to change this key business. We will continue with it in the future and it continues to represent the value of the company," he stressed.

SYNERGIES OF 300 MILLION EUROS

Bruch has highlighted that the objective of Siemens Energy is to fully integrate the business of SGRE and from the German company they point out that the combined group could benefit from around 300 million euros in synergies.

On this, he has deepened that SGRE continues to focus on the energy transition and that he hopes that this traction will bring "significant benefits and create value throughout the group".

Bruch has underlined that the highest percentage of cost synergies will come from the supply chain side, with the combination of volumes and joint processes that will contribute to savings.

DIFFERENCE WITH THE PURCHASE OF SHARES FROM IBERDROLA

Asked why Siemens Energy is now offering a lower share price than the €20 it paid in February 2020 to acquire Iberdrola's 8.1% stake in SGRE, Bruch has highlighted SGRE's deterioration since then.

"When the Iberdrola shares were bought, the situation of the company (SGRE) was different. The situation has deteriorated and there have been different 'profit warnings' that have been issued since then and that has an effect on the price", he argued. the manager.

BAG EXCLUSION

The CEO of Siemens Energy has also indicated that the company's interest is to buy as many SGRE shares as possible and has highlighted its intention to "be able to convince minority shareholders" to sell theirs.

In this sense, the offer, of 18.05 euros per share, represents a premium of 27.7% with respect to the last unaffected closing price of May 17, 2022 of 14.13 euros per share.

As for the intention to exclude Siemens Gamesa from the Stock Exchange, Bruch has pointed out that there is a mechanism that depends on the approval of the Spanish supervisor, "which has a lot of room for decision", and has stressed that "by passing 75% of the shares could be excluded" from listing, something that, in his opinion, would be a financial simplification for the joint treasury.

In fact, Siemens Gamesa shares began the session with a rise of 6.14%, to 17.73 euros, after the announcement of the takeover bid and by mid-morning the value continued to rise and was already trading at 17.79 euros (6. 24%)