Shares of Siemens Energy rose roughly 1.5% in pre-market trading in Frankfurt after reports emerged that the company has hired Goldman Sachs Group to help solicit offers for a majority stake in its steam turbine business.
According to the reporting, Siemens Energy intends to hold a board meeting on Tuesday to decide how to proceed with a potential divestment of its Transformation of Industry division. The consultation with Goldman Sachs is part of preparations to field interest from potential buyers.
Several private equity firms are said to be weighing possible bids for the business. Among those identified are CVC Capital Partners, EQT and Bain Capital, while Brookfield and KKR are also reported to be exploring potential offers. Any transaction for a majority stake could be valued at more than €10 billion, or about $11.7 billion.
Sources cautioned that deliberations remain ongoing and that there is no assurance any of the buyout firms will proceed with formal proposals. The situation is therefore fluid and dependent on decisions yet to be taken by both prospective bidders and Siemens Energy's board.
The current development follows reporting from approximately two months earlier that Siemens Energy was considering a split of the Transformation of Industry division, which manufactures compressors and steam turbines. That earlier reporting, citing an internal document, indicated company strategists had concluded a separation could lead to higher margins and enhanced shareholder value over the long term.
Siemens Energy describes its Transformation of Industry division as the world's largest producer of industrial steam turbines and generators and the second-largest manufacturer of compressors. For the six months ended March, the division generated €2.7 billion in revenue, representing 13.5% of the group's €20 billion in total sales for that period. The unit employs approximately 17,000 people.
Earlier coverage noted that an initial step under consideration could involve divesting around 60% of the division's shares, leaving Siemens Energy with an approximate 40% stake. Both a focused spin-off and an initial public offering were described as possible pathways for such a transaction, though no definitive course has been selected.
What to watch next
- Outcome of the Siemens Energy board meeting scheduled for Tuesday and any formal announcement on process or timing.
- Whether private equity firms move from exploratory interest to binding offers and on what valuation basis.
- Decisions about transaction structure - sale of majority stake, spin-off, or IPO - and the implications for Siemens Energy's retained ownership share.