Siemens Energy is considering a takeover bid for Siemens Gamesa, with plans to delist shares of the loss-making wind turbine manufacturer.
“In the light of recent media reports Siemens Energy AG confirms that management is considering a cash tender offer for all outstanding shares in Siemens Gamesa Renewable Energy SA with the intention to delist,” the Munich-based energy company said in a note to investors.
“The outcome of this consideration is open. No decision has been made and there is no certainty that a transaction will materialise.”
The Spanish stock market regulator had suspended the trading of Siemens Gamesa shares at the Madrid stock exchange until 1030 CEST.
Shares in Siemens Gamesa had surged 11.18% to €15.71 ($16.51) on the Madrid stock exchange ahead of the suspension, following news reports about the planned takeover. Siemens Energy shares rose 4.49% to €17.56 in early morning trading in Frankfurt.
Siemens Energy currently owns 67% of Siemens Gamesa shares, but management in Munich had long been dissatisfied with the performance of the Spain-headquartered OEM.
Skies had darkened further around Siemens Gamesa when the OEM in April had placed its guidance under review, following the release of preliminary second quarter (January to March) 2022 results that showed lacklustre orders and a widening operating loss.
Siemens Energy earlier this year had already tightened the leash on Spain-headquartered Siemens Gamesa by sacking former chief executive Andreas Nauen and installing Siemens Energy board member Jochen Eickholt as new CEO instead.
“In the six weeks since taking over as CEO, I have been asking questions and drilling down into every part of the business to get an understanding of the issues and coming to conclusions about how to address them,” Eickholt had pledged weeks after taking over from Nauen.
“As a management team, we are now turning these insights into a programme that can quickly get us back on track towards profitability and industry leadership.”
When Siemens Gamesa in May acknowledged a €377m net loss in the second quarter amid continued challenges from the ramp-up of its 5.X turbine platform and supply chain disruptions, Eickholt announced the OEM will soon present a plan called Mistral to improve its profitability.
The OEM in the wake of the turnaround programme may reduce the number of turbine models and offer more standardised and simplified products, trying to mirror the 'modular approach' of the automotive industry, the CEO said.
Siemens Energy CEO Christian Bruch had regularly urged that Siemens Gamesa's problems – in particular in its onshore wind business – must be fixed.
Siemens Gamesa's troubles come as all Western wind turbine manufacturers currently are operating at a loss, following cost inflation due to supply chain bottlenecks in the wake of the Covid-19 pandemic, which have been further exacerbated due to the war in Ukraine.