Siemens AG Increases Stake in Pakistan Subsidiary to 89%

Siemens AG, a prominent German multinational technology conglomerate, has made headlines with its recent acquisition of an additional stake in Siemens (Pakistan) Engineering (SIEM) for a substantial amount of Rs1.7 billion, which is approximately $6.2 million. This strategic move has increased Siemens AG's ownership in its Pakistani subsidiary to nearly 89%. The announcement was made public on Friday when SIEM communicated the details to the Pakistan Stock Exchange (PSX).

According to the notice issued by SIEM, the parent company, Siemens Aktiengesellschaft, which already held a 74.65% share in the company, entered into a share purchase agreement on November 1, 2024, with National Investment Trust Limited (NIT). This agreement involved the purchase of all shares held by NIT, amounting to 1,142,611 shares, which constitutes approximately 13.85% of the total issued and paid-up capital of SIEM. The shares were acquired at a price of Rs1,516 each, leading to a total transaction value of Rs1,732,198,276.

The increase in Siemens AG's shareholding from 74.65% to 88.51% marks a significant consolidation of control over SIEM. At the time of this announcement, SIEM's share price was trading at Rs1,464. This acquisition comes on the heels of another major decision by SIEM, which approved the sale of its energy portfolio to Siemens Gamesa Renewable Energy (Private) Limited for around Rs17.82 billion, or about $64 million, just last month.

Founded in 1953, SIEM operates as a public limited company and is involved in the sale of electronic and electrical capital goods. The company is engaged in various business segments, including power and gas, power generation services, energy management, digital factory, process industries and drives, and mobility. This diverse portfolio positions SIEM as a key player in Pakistan's engineering and technology sectors.

Siemens AG's increased stake in SIEM not only reflects the company's confidence in the growth potential of the Pakistani market but also underscores the importance of strategic investments in enhancing operational capabilities. As Siemens continues to expand its footprint in Pakistan, it is likely to contribute significantly to the local economy and technological advancement. This acquisition could pave the way for further innovations and improvements in the engineering sector, benefiting both the company and the nation as a whole.