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Germany's Siemens selling Draeger stake

Germany's Siemens selling Draeger stake

German conglomerate Siemens AG said Tuesday it will sell its 25 percent stake in Draeger Medical AG & Co. KG to the unit's major stockholder, Draeger.
Siemens, based in Munich, said its board signaled approval for the deal, which requires regulatory approval and will see Draegerwerk AG & Co. KG take over the medical engineering company.
When complete, the deal should result in some (EURO)250 million ($360.8 million) in proceeds, including (EURO)175 million in cash, credit and options, Siemens said, adding it had reduced its stake from 35 percent to 25 percent in 2007.
The sale proceeds include cash, credit and option components. After completion of the transaction, Siemens will receive (EURO)175 million in cash.
Siemens said it would provide Draegerwerk, based in Luebeck, with credit for another (EURO)68.5 million, and a five-year option could see another (EURO)50 million going to Siemens, pending how Draegerwerk's preferred share develops. Right now, the option is worth (EURO)6.5 million.
Siemens shares were down .35 percent to close at (EURO)64.83 in Frankfurt trading while shares of Draeger were up .12 percent to close at (EURO)29.82.
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On the Net:
http://www.siemens.com


Updated : 2020-11-30 20:28 GMT+08:00