Monday, January 31, 2011

Siemens bids $1.36 billion to increase stake in Indian subsidiary............

The Associated Press, On Monday January 31, 2011, 6:16 am EST

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.

My Comments:
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......


  1. Rajeev Sir,
    On ur recommdayion I bought ABC India. But I also found that same promoter is running transport international at mkt cap of 30 crore. Any views on this company.

  2. rajeev Sir,
    1)I am VERY BULLISH on medical devices sector. This is great consumer sector.
    2) I have great faith on Siemens

    But I have no idea about siemnes healthcare. Any views on this 200 cr mkt cap company which is in field with size of billions.

  3. ramesh,
    That is the problem.Siemens name only is enough for anyone to buy it.So Siemens Health is an excellent buy at this time having a tiny eq of just 1.52 cr.One have to imagine how much bonus will come and then splitting will come....
    Conviction , I can't infuse to anyone.One has to develop his/her own conviction.Even after I will give my nod, there is no gurantee that one will not sell early.
    Create your own conviction.

  4. Rajeev Sir,
    extending my question to Poly Medicure with mkt cap of 300 crore growing very nicely. Have u ever tracked this medical device company ?

    this one look very interesting

    Technically(one year) also Poly Medicure looks very strong.

  5. Dear Rajeev,

    How R U?
    I know you like Alstom,Areva and Siemens.
    Which one you like the most in these?

    Vishnu R Nair