The Board of Directors (BoD) of Siemens (Pakistan) Engineering Co.Ltd (SIEM), an engineering conglomerate and financial services contractor, has approved the sale of company’s energy portfolio to Siemens Gamesa Renewable Energy (Private) Limited for approximately Rs17.82 billion (~ $64 million).

On Monday, the listed company shared the development in a notice to the Pakistan Stock Exchange (PSX).

“The board has approved with majority in its meeting held on October 11, 2024 the sale and transfer of the company’s energy business segment on a going concern basis to a non-affiliated Siemens Energy Group Entity i.e. Siemens Gamesa Renewable Energy (Private) Limited (the buyer) for an aggregate consideration of approximately Rs17.82 billion as at the valuation date i.e. March 31, 2024,” read the notice.

Siemens Pakistan says it intends to sell energy portfolio

The company, which is principally engaged in execution of projects under contracts and in manufacturing, installation and sale of electronic and electrical capital goods, informed that the net book value of energy business as at valuation date was approximately Rs17.61 billion (~ $63.5 million).

“The determination of cash to be received from the buyer and gain / loss on the transaction is subject to computation based on net book value as of effective date (i.e. transaction closure date) and certain other contractual subsequent events in accordance with the terms and conditions of the agreement to be executed with the buyer,” SIEM said.

It further noted that the closure of the transaction shall remain subject to shareholders’ and other 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.