FRANKFURT, Feb 26 (Reuters) - Siemens Energy should not sell its wind division below value, a top-20 shareholder said on Thursday at the group's annual general meeting, where the future of the
Investor Urges Siemens Energy to Retain Wind Division Value
FRANKFURT, Feb 26 (Reuters) - Siemens Energy should not sell its wind division below value, a top-20 shareholder said on Thursday at the group's annual general meeting, where the future of the struggling business will be a key topic after calls for a spin-off.
The future of Siemens Gamesa, which has weighed on Siemens Energy's profits for years, has come into sharper focus after U.S. activist shareholder Ananym in December called for a review and spin-off, arguing it would boost shareholder value.
Stabilization Before Strategic Decisions
Siemens Energy has been open in principle to the idea but wants to first stabilise the business, which made a 1.36 billion euro ($1.61 billion) operating loss last year and is expected to break even in 2026.
Investors in Germany have backed the strategy of fixing the business before considering strategic steps.
THERE SHOULD BE NO FIRE SALE
Investor Concerns Over Divestment
"To be clear: divesting Gamesa at this point in time would be equal to selling it below its value," Deka Investment's Ingo Speich said. "Do not squander away Gamesa."
Ananym said in a statement it had recently held "very constructive direct discussions" with Siemens Energy's leadership, adding there largely was agreement in the thinking about Gamesa.
"No one is calling for a fire sale, or a sale at all, we're talking about a spin-off. And we understand nothing can be done today," it said, adding the goal was to start thinking about the future and that management had done a "heroic job" on getting Gamesa closer to being able to stand on its own feet.
Challenges in Achieving Profit Margins
Ananym said that even if Siemens Gamesa could be stabilised it was unlikely to reach the margin targets set by the parent and would continue to be a drag on its parent.
Siemens Energy has said it wants all of its businesses to generate double-digit margins, far higher than the 3-5% profit margin targeted for Siemens Gamesa by 2028.
Siemens Energy CEO Christian Bruch said there would have to be a clear path towards double-digit returns for the division by 2028.
($1 = 0.8471 euros)
(Reporting by Christoph Steitz. Editing by Mark Potter and Louise Heavens)
