Siemens has gone on to announce its plans to go ahead and deconsolidate stake in Siemens Healthineers, which is at present circa 67%. The company looks forward to transferring 30% of Siemens Healthineers shares to Siemens AG shareholders through direct spin-off as the preferable choice. Hence, Siemens shareholders are going to benefit directly and also get shares in Siemens Healthineers. Simultaneously, the deconsolidation is sure to offer a potential to unlock the long-term value when it comes to Siemens shareholders as a much more focused technology company having a highly synergistic Siemens portfolio. Apparently, Siemens seeks to decrease its stake in Siemens Healthineers to quite a prominent minority so as to allow greater capital allocation agility. Therefore, with this, Siemens also continues to take part in the attractive business of Siemens Healthineers in terms of a minority shareholder. When it comes to the medium term, it is indeed targeted to decrease the shareholding to a financial asset.
Siemens is indeed committed so as to manage its investment in Siemens Healthineers in a much more responsible as well as a shareholder-focused manner. Besides, Siemens also goes on to reaffirm its commitment in terms of a progressive dividend policy that will be maintained even post the deconsolidation of Siemens Healthineers.
According to the President and Chief Executive Officer of Siemens AG, Roland Busch, this day indeed marks the start of the next stage of growth when it comes to Siemens. With Siemens going ahead to deconsolidate stake in Siemens Healthineers and giving up the controlling majority within it, they are focusing on a highly synergistic Siemens portfolio, and this is quite a logical next step when it comes to executing their strategy of combining the real as well as the digital worlds, stressing the rising profitable growth of their digital businesses, connected as well as software-defined hardware, and also industrial artificial intelligence.
As per the Chief Financial Officer of Siemens AG, Ralf P. Thomas, each of the two companies happens to have quite a strong financial profile that offers strategic agility in order to speed up the value creation in their respective major markets by way of a customized capital allocation, hence helping both organizations to function with much greater flexibility as well as focus. When it comes to Siemens, the deconsolidation goes on to give additional leeway, raises the transparency, while at the same time reduces the intricacy for the capital market, and also simplifies the governance structures. Simultaneously, the way of spin-off happens to be a market-friendly transfer of shares.
As announced in the past, the decision goes on to follow an in-depth evaluation as well as a strategic review of how both the companies can go on to best realize their absolute potential, make their respective transformations fast, and also successfully tap certain new areas of progress. This goes on to sharpen the profile of Siemens as ONE Tech Company, which is driving quite a stronger customer focus, much faster innovation, and also quite fast profitable growth. At the same time, Siemens Healthineers is also benefiting from a prominently higher free float and hence a greater attractiveness for the capital market in terms of a leading pure-play MedTech champion.
It is worth noting that the intended transaction happens to be subject to certain final regulatory clarifications as well as approvals by both companies’ shareholder meetings – Siemens and Siemens Healthineers. In the months to come, Siemens is going to continue to work pretty closely with relevant parties in terms of detailing the structure and, at the same time, timing pertaining to the transaction. There would be more details, which are going to be provided as early as Q2 of 2026.
