By John Revill
ZURICH (Reuters) -Siemens said on Wednesday it would cut its 33.5 billion euro ($39.07 billion) stake in Siemens Healthineers by transferring shares in the medical equipment maker to its own shareholders.
The German engineering group will reduce its 67% stake to 37% by giving 30% of its Healthineers stock to Siemens shareholders, it said, noting that a direct spinoff was the “preferable option”.
Siemens will continue reducing its holding to less than 20% in the medium term.
This could be done by selling shares on the market or transferring them to its pension fund, as Siemens had done when reducing its holding in Siemens Energy.
MOVE SEEN AS WAY TO INCREASE SIEMENS’ FOCUS ON TECH
Siemens’ future investment in Healthineers, a maker of medical imaging and diagnostics equipment that it floated in 2018, has been debated among investors in recent months. It has gradually cut its initial 85% stake in Healthineers, selling 2% for around 1.45 billion euros in February.
Siemens is due to unveil its new strategy and post fourth-quarter results on Thursday.
Siemens will get no money from the stock transfer, which would help the company focus on its core areas of factory and building automation as well as its train-making mobility business.
“This is a logical next step in executing our strategy of combining the real and the digital worlds,” said Siemens CEO Roland Busch.
It would also allow Siemens to focus on its software and digital businesses which link hardware to artificial intelligence, he said.
No timing was given for the spinoff, which is subject to approvals from its shareholders and investors at Healthineers.
SIEMENS HEALTHINEERS WELCOMES MOVE
Healthineers welcomed the move, which could boost its share price by removing the uncertainty over what Siemens will do with its stake.
“We appreciate the clarity,” said Chief Executive Bernd Montag. “This is good news for Siemens Healthineers, as it continues our journey to becoming a fully independent company.”
The divestment has been seen by investors as a chance for Busch to stamp his mark on the company he has led since 2021. His contract runs until 2030.
Large shareholders including Deka Investment also wanted Siemens to reduce its stake to concentrate on its core businesses of industrial and building automation.
On Wednesday, Siemens also announced that CFO Ralf Thomas will step down in fiscal 2026 and be replaced by Veronika Bienert, who is CEO of Siemens Financial Services.
Thomas will remain on the supervisory board of Healthineers after his departure from Siemens.
(Reporting by John Revill; Editing by Mark Potter, Tom Sims and Richard Chang)
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