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(Bloomberg) -- Siemens AG plans to sell a €2.5 billion ($2.6 billion) stake in Siemens Energy AG in the coming months to help fund its $10 billion acquisition of software maker Altair Engineering Inc.
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Siemens is looking to divest a roughly 6% holding by the end of September, Chief Financial Officer Ralf Thomas said in an interview. The engineering conglomerate currently owns 17% in the turbine maker it spun off in 2020.
Siemens Energy shares on Wednesday trimmed gains over the stake sale plans. The stock has more than quadrupled this year due to optimism that the company is on track to fix longstanding problems at its Gamesa wind-turbine unit. The manufacturer lifted its midterm targets last month on rising demand for products supplying power-hungry data centers.
When announcing the Altair takeover in October, Siemens said it plans to fund the deal by selling stock in listed entities as well as with proceeds from recent divestments such as the €3.5 billion sale of its Innomotics heavy-duty motors operations. Siemens will eventually sell its entire Siemens Energy holding but isn’t in a rush, Thomas said.
“It would not be prudent to push all of that into the market now,” the CFO said. “We have mechanisms in place that are very carefully handling the share price development of Siemens Energy.”
Thomas indicated earlier this year that Siemens is open to selling 5% of its around 75% holding in Siemens Healthineers AG. That would raise around €3 billion based on current market prices. A 6% stake of Siemens Energy was worth around €2.5 billion as per Tuesday’s close.
With the proceeds from deals including selling Innomotics and Siemens Energy stock, only a small remainder may need to be funded via a bond issue, the CFO said.
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(Updates with Siemens Energy shares in third paragraph.)
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