Siemens (Pakistan) Engineering Company Limited (SIEM), an engineering conglomerate and financial services contractor, intends to sell its energy portfolio to a non-affiliated entity of Siemens Energy Group.

The company shared the development through a notice to the Pakistan Stock Exchange (PSX) on Monday.

“The BoD of directors of Siemens (Pakistan) Engineering Co. Limited (Company) has approved, in principle, that the company assess the feasibility/implications/ viability of a sale of the company’s energy portfolio to a separate non-affiliated Siemens Energy Group entity (proposed transaction) following the spin-off of the energy business by Siemens AG in 2020,” read the notice.

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The company, which is principally engaged in execution of projects under contracts and in manufacturing, installation and sale of electronic and electrical capital goods, added that the proposed transaction shall remain subject to (i) further internal and corporate approvals, the (ii) signing of definitive transaction agreements and the (iii) receipt of all applicable regulatory approvals.

SIEM was set up as a public limited company in 1953. It sells electronic and electrical capital goods while also executing projects under contracts.

The company operates several business segments such as power and gas, power generation services, energy management, digital factory, process industries and drives, and mobility.