Siemens' delisting on the cards

The talk of delisting of Siemens Pakistan has augmented the expectations of the shareholders. Market sources said Siemens Pak Engineering Company delisting is on the cards because of certain changes in the company's business strategy. Presently, the company enjoys a paid-up capital of Rs 82.470 million and the share price stands at Rs 1,322.00.
"Owing to margin contraction and under the new business strategy, Siemens Pakistan is planning to phase out its operations from the country. Margin contraction is mainly due to the uncertainty prevailing in the country," dealers said. Although, so far the company has not made any official announcement, however the market is expecting an official notification in a couple of weeks.
The prominent companies whose delisting privileged the shareholders are United Sugar and Unilever Foods in previous years. Brokers are expecting that delisting of Siemens will also be beneficial for shareholders in shape of better price for their holdings. Siemens Company has a total shares volume of 5,451,120 million. National Bank of Pakistan, Siemens AG, B.O. Punjab and Adamjee Insurance are big companies, which have major shareholding in the company.
Recently, Siemens Pakistan had announced that it will sell its transformer plant business. Pursuant to the decision of its board of director, the company, subject to corporate and regulatory approvals, intends to divest its business of manufacture and sales of transformers on a going concern basis as run by its Business Unit Transformers in Karachi, and possibly including its full interest in the land and building.
The company has invited expressions of interest (EOIs) from prospective purchasers interested in acquiring the business and/or the real estate. As per the announcement, the company is looking for a potential purchaser for the business to ensure the solid going concern and to further boost the current growth.
Siemens is interested in disposing of the business and the real estate, respectively, in each case in entirety and will not entertain EOIs furnished for only part of the business or the real estate, it added. Market sources said Siemens would be the sixth company which is going to initiate its delisting in the ongoing year.