By The Associated Press
BERLIN - Germany's Siemens AG says it launches an offer valued at €1 billion ($1.36 billion) to increase its stake in its publicly listed Indian subsidiary Siemens Ltd. from currently 55 per cent to 75 per cent.
The company said Monday it plans to expand its stake in a bid to strengthen its business in India.
The industrial conglomerate, based in Munich, said it will offer shareholders of Siemens Ltd. 930 rupees ($20.30) per share, 28 per cent above Friday's closing price of 728 rupees.
It said the offer is expected to open on March 25 pending regulatory approvals, and is scheduled to close on April 13, 2011.
Siemens Ltd. posted a revenue of about 90 billion rupees in its fiscal year 2010 and saw an operational profit of about 12 billion rupees — then about $150 million.
I have been constantly recomending Seimens Ltd here since it was around 500.I have almost never left it in any of my call on A gr and has always put as an evergreen stock to hold for LT.
The above news confirms that Seimens wants to strengthen the stake to move forward with doing more business in India.
Seimens wants to increase the stake at 28% over the prevailing market price .That is excellent news for those holding the shares.
Seimens, ABB, Areva, Alsthom, L&T, Ril Ind,Thermax, Sesa Goa are such Cos where one can never go wrong.
Just imagine when chips are down Seimens is ready to pay 28% forward premium to up its stake and one have to just assume what they are thinking of making this Co......