Siemens sees market value of energy spin-off above US$20 billion: source

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Siemens expects Siemens Energy to reach a market value of significantly more than 17 billion euros (US$19.98 billion) when it floats on the ...

Siemens expects Siemens Energy to reach a market value of significantly more than 17 billion euros when it floats on the Frankfurt stock exchange next week, a source close to the company said.

The consensus forecasts for the value of the business, which makes gas and wind turbines, is 21 billion to 22 billion euros, said the source. Based on the number of Siemens Energy shares, that would result in a share price of 28.90-30.28 euros apiece.The success of the spin-off can only be estimated after two or three months, with high price volatility expected after the company makes its stock market debut on Sept. 28, the person said.

Siemens is selling off the business, which has been hit by a collapse in demand and changing energy policies, to focus on smart buildings, mobility and factory automation.It is giving 55per cent of the shares in the unit to its shareholders at a ratio of one share for every share two Siemens share. Siemens' pension fund will get 9.9per cent, while Siemens AG will keep a direct stake of 35.1per cent.

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