Siemens to spin off 55% of Siemens Energy as revenues fall

Siemens has announced that it will spin off 55 percent of its subsidiary Siemens Energy to its shareholders, by giving them one share in the new company for every two shares they own in Siemens. Siemens also revealed that it would reduce its stake in the new company even further within 18 months in order to allow Siemens Energy to restructure its operations to match changing conditions worldwide. This is a reference to the fact that renewable energy sources are increasingly coming to dominate while the world's dependence on fossil fuels continues to diminish. Siemens is not hitting its revenue targets with its energy divisions, including its wind turbine arm which recently reported losses of $60m thanks to Covid-19 related disruptions. Siemens has called for an extraordinary shareholder meeting on July 9 at which it will seek approval for the spinoff of Siemens Energy.