SIEMENS

** Shares of Siemens SIEM.NS fall 2% after Jefferies removes investment in industrial co in its key portfolio

** "Weightage of four Chinese stocks in the Asia ex-Japan long-only portfolio will be increased by one percentage point each by removing investment in SIEM," says Chris Wood, global equity head of Jefferies

** Despite losses on the day, SIEM up 10.7% this week, set to snap four-week losing streak, in which it declined 24%

** Jefferies had reiterated "buy" on SIEM earlier in the week, citing potential for margin expansion and value unlocking from energy business demerger

** Average rating of 21 analysts is "buy", with median TP at 6,255.5 rupees - data compiled by LSEG

** SIEM down 22% YTD vs 10% and 5.5% drop in energy .NIFTYENR and infra .NIFTYINFR indexes, of which it is a constituent

(Reporting by Bharath Rajeswaran in Bengaluru)

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** Shares of Siemens SIEM.NS rise 3.7% to 4,792.9 rupees; snap five-day losing streak

** Co to see margin expansion with revenue growth aided by increased spending in transmission and distribution, decarbonization, automation - Jefferies

** Adds, energy demerger to add 8%-21% to market price, unlocking value similar to Hitachi Energy HITN.NS and GE Vernova GETD.NS

** Jefferies reiterates "buy" rating on stock; maintains PT of 7,215 rupees

** 21 analysts covering the stock on avg have a "buy" rating; median PT is 6,255 rupees - data compiled by LSEG

** Stock has shed 29% so far this year vs 22% and 36% falls in HITN and GETD, respectively

(Reporting by Ashna Teresa Britto in Bengaluru)

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Feb 12 (Reuters) - Siemens Ltd SIEM.NS:

• DEC-QUARTER CONSOL NET PROFIT 6.14 BILLION RUPEES

• DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 35.87 BILLION RUPEES

Source text: ID:nnAPN2ND560

Further company coverage: SIEM.NS

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Updates with details, market reaction and analyst quotes

MUMBAI, Feb 1 (Reuters) - India's federal government will spend a record 11.21 trillion rupees ($129.54 billion) on infrastructure in the upcoming financial year that begins on April 1, but the increase in planned spending disappointed markets.

The spending plan is slightly higher than the revised 10.18 trillion rupees for the current fiscal year, as per budget documents.

Alongside this, the government has set aside 1.5 trillion rupees for 50-year interest-free loans to states for infrastructure development for 2025-26.

WHY IT'S IMPORTANT

India significantly raised spending on infrastructure after the COVID-19 pandemic, as it tried to boost economic growth and create more jobs in the world's most populous country.

However, the government failed to meet its planned capital spending target of 11.11 trillion rupees in the current financial year.

Growth in Asia's third-largest economy is seen slowing to 6.4% in the current fiscal year, from 8.2% in the previous year, prompting calls for measures to kick-start private investment and job creation.

A failure to create enough well-paying jobs in a country of more than 1.4 billion people, where the majority are under the age of 30, has led to curtailed consumption and investment.

GRAPHIC

KEY QUOTES

"The next year's capex target has seen 10% increase, which will be positive for crowding in private investments," said Sonal Badhan, economist at Bank of Baroda.

"We believe that ~10% growth in capex budget from downward my revised FY25 levels while balancing focus on the fiscal consolidation roadmap is a positive," said Kanika Pasricha, economist at Union Bank of India.

"More importantly, demand stimulus via tax cuts is likely to further help support pickup in private capex recovery even as public capex is hitting absorptive capacity in recent years," Pasricha said.

MARKET REACTION

Stocks of capital goods companies such as Larsen & Toubro LART.NS declined 4%, while Siemens SIEM.NS and BEML BEML.NS fell 5.3% and 1.3% respectively.

($1 = 86.5360 Indian rupees)

(Reporting by Siddhi Nayak; Editing by Varun H K)

(([email protected]; +91 22 6921 7848; Reuters Messaging: X: https://twitter.com/siddhiVnayak))

** Siemens India SIEM.NS down ~1% at 6,796 rupees, set for 5th straight day of declines

** Nuvama cuts rating to "hold" from "buy" and TP to 7,000 rupees from 8,350 rupees after Q4 earnings call on Friday

** Nuvama sees delay in high-voltage direct current (HVDC) orders as India prefers line-commutated converters (LCC) tech

** Nuvama notes slow orders for locos/trainsets, with higher share likely going to Indian Railways' factories

** 21 analysts' avg rating is equivalent of "buy", mean PT is ~7,006 rupees -LSEG data

** Stock up ~69% YTD, on track for sixth straight yearly gain

(Reporting by Ashish Chandra in Bengaluru)

(([email protected] (+91 7982114624))

** Shares of Siemens SIEM.NS rise 4.1% of 7,538 rupees apiece

** Capital goods company posts a 45.4% jump in consolidated net profit in the September quarter

** At least three brokerages reiterated positive outlook after the quarterly results on Tuesday, citing strength in order inflows and revenue outlook

** Prabhudas Lilladher says SIEM is well-positioned for sustained growth due to government spending on infrastructure and a likely resurgence in private capex

** Robust order inflows in smart infrastructure, mobility, and energy segments, considering the slowdown in election season, augurs well for future earnings outlook, says HDFC Securities

** Shares of SIEM have risen 84.5% in 2024 so far, outperforming the 31% rise in Nifty Next 50 index .NN50

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

MUNICH, Nov 13 (Reuters) - A U.S. presidency under Donald Trump is likely to negatively impact future offshore wind projects in the country, the chief executive of Siemens Energy ENR1n.DE told journalists on Wednesday, adding current projects were less likely to be hit.

"In the offshore wind sector ... the future projects that are now being discussed may very well be influenced by this," Christian Bruch said.

(Reporting by Christoph Steitz, editing by Rachel More)

(([email protected]; +49 30 220 133 647;))

Nov 4 (Reuters) - Omer Spa OMR.MI:

• STARTS PRODUCTION FOR SIEMENS MOBILITY ORDER OF 83 INTERIOR COMPONENTS FOR AMTRAK TRAINS

• ORDER TO CONTRIBUTE BETWEEN 2%-4% TO BACKLOG VALUE OF ABOUT EUR 122 MILLION

• DELIVERY TO START IN 2024, TO CONCLUDE BY END OF 2028

Further company coverage: OMR.MI

(Gdansk Newsroom)

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Oct 31 (Reuters) - Siemens Ltd SIEM.NS:

• GUILHERME VIEIRA DE MENDONCA NAMED MD, CEO OF SIEMENS ENERGY INDIA

• HARISH SHEKAR NAMED CFO OF SIEMENS ENERGY INDIA

Source text: ID:nNSE8ZnYpC

Further company coverage: SIEM.NS

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Sept 19 (Reuters) - Siemens Ltd SIEM.NS:

• SIEMENS - GETS NSE APPROVAL FOR SCHEME OF ARRANGEMENT BETWEEN CO AND SIEMENS ENERGY INDIA

Source text for Eikon: ID:nBSE9LLpX3

Further company coverage: SIEM.NS

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Aug 30 (Reuters) - Siemens Ltd SIEM.NS:

• GOT TAX ORDER WITH POTENTIAL TAX DEMAND OF 293.87 MILLION RUPEES

Source text for Eikon: ID:nBSE3qD1fw

Further company coverage: SIEM.NS

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Aug 9 (Reuters) - Siemens Ltd SIEM.NS:

• SIEMENS JUNE-QUARTER CONSOL NET PROFIT 5.78 BILLION RUPEES

• SIEMENS JUNE-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 52.04 BILLION RUPEES

Further company coverage: SIEM.NS

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Updates stock moves in last paragraph

MUMBAI, July 23 (Reuters) - India's federal government said on Tuesday that it will spend a record 11.11 trillion rupees ($132.85 billion) on infrastructure in the financial year ending March 2025 to support growth and create more jobs in the world's most populous country.

The spending plan was unchanged from the interim budget presented in February before the national elections.

"This would be 3.4% of our GDP (gross domestic product)," Finance Minister Nirmala Sitharaman said while presenting the federal budget.

GRAPHIC

For the current fiscal, the government has made an outlay of 1.5 trillion rupees for long-term loans to states for infrastructure.

WHY IT'S IMPORTANT

The government has doubled spending on infrastructure over the past three years as a way to boost the economy. As a percentage of GDP, longer-term capital expenditure has risen to 3.4% in the current year from 1.7% in 2019-20.

Infrastructure spending, which generates demand across sectors from cement to steel and creates jobs, has a strong multiplier effect on the economy, economists say.

India's economy expanded at a faster-than-expected pace of 7.8% in the March quarter, but Prime Minister Narendra Modi has faced criticism from analysts and political rivals for not creating enough jobs. This, in turn, has weighed on consumption, which forms 60% of India's GDP, and held back private investment.

MARKET REACTION

No change in the allocation for capital spending led to a 1.4% fall in the stocks of capital goods companies, with Larsen & Toubro LART.NS down 4% and Siemens SIEM.NS down 2.7%.

($1 = 83.6310 Indian rupees)

(Reporting by Siddhi Nayak; Editing by Savio D'Souza and Sonia Cheema)

(([email protected]; +91 22 6921 7848; Twitter: https://twitter.com/siddhiVnayak))

June 20 (Reuters) - Jupiter Wagons Ltd JUWL.NS:

• JUPITER WAGONS LTD - UNIT GOT CONTRACT FROM SIEMENS FOR SUPPLY OF 36 AUXILIARY BATTERIES

• JUPITER WAGONS LTD - 72.8 KWH LFP BATTERY PACK HAS BEEN TECHNICALLY QUALIFIED BY BHEL FOR USE IN VANDE BHARAT TRAINSETS

Source text for Eikon: ID:nNSE9PkZy2

Further company coverage: JUWL.NS

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** Shares of Rail Vikas Nigam RAIV.NS up 3%; Siemens India SIEM up 1.9%

** Rail Vikas and Siemens India consortium wins a 3.94 bln rupees ($47.2 mln) project from Bangalore Metro Rail Corporation

** The project involves designing, supplying, installing, testing, and commissioning the electrification system for Phases 2A and 2B of the Bangalore Metro

** SIEM's is the lead partner in the consortium with a 70% share, while RAIV holding the remaining 30%

** Additionally, RAIV emerged as the lowest bidder for a project worth 1.38 bln rupees from the Central Railway

** Including session's gain, RAIV is up 112.5% YTD, while SIEM is up 73.8%

($1 = 83.4900 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru)

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Corrects to "forward" from "toward" in second-last paragraph

By Bharath Rajeswaran

MUMBAI, June 5 (Reuters) - Indian consumer-focussed companies are likely to shine, while capital spending-linked firms could suffer as the government shifts its policy focus to support lower-income segments, fund managers and analysts said on Wednesday, a day after a surprise result in the national elections.

Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) secured a third term in government but without a majority of its own, confounding expectations and raising concerns over the pace of reforms and the priority of investment-led growth.

Indeed, the fast moving consumer goods (FMCG) index .BSESCGIP rose 0.15% on Tuesday, the only bright spot in the stock market carnage, which included a 12% plunge in the capital goods index .BSECG.

FMCG stocks continued their rise on Wednesday, climbing 5.2%, while capital goods companies slid 1.5%.

The BJP lacking a simple majority raises doubts over a stable government and policy-making styles, said analysts at CLSA.

The brokerage remained "overweight" on consumer staples and said ITC ITC.NS was its preferred pick in the sector.

CLSA is also positive on banks, IT and insurance companies, and replaced Larsen & Toubro (L&T) LART.NS with HCLTech HCLT.NS in its India focus portfolio.

The blue-chip Nifty 50 .NSEI and Sensex .BSESN indexes tumbled nearly 6% each on Tuesday, their worst one-day performance since March 2020.

Despite the plunge, valuations of cyclicals are expensive, said Nuvama Institutional Equities, preferring consumption-linked stocks over capital expenditure-linked sectors.

It expects weak demand to weigh on private capex and government capex to decelerate.

The Nifty 50 is currently trading at 19 times 1-year forward expected earnings (PE), below the 10-year long-term average of 20x.

Consumer staples like Hindustan Unilever HLL.NS, Britannia Industries BRIT.NS, Colgate COLG.NS are trading at a PE of 52x, 51x and 49x, respectively, lower than their long-term valuations.

Conversely, capital goods companies like L&T and Siemens Ltd SIEM.NS are trading above their long-term valuations.

"Days of paying any multiple for stocks in industries where big reforms are expected are gone," said Ashutosh Tiwari of Equirus Securities, cautioning investors to focus on sectors "where earnings visibility is more certain."

Equirus identified rural recovery as a theme that could benefit in the near term and picked building materials, consumer durables, automobiles and industrial consumables as its preferred sectors.

"The election result is likely to lead to a more balanced market; risk-reward in large caps and underperforming sectors like banking and consumer appears more favourable," said Rahul Singh, chief investment officer of equities at Mumbai-based Tata Asset Management.

"More specifically any moderation in the capital spending outlook in favour of consumption support can further drive sectoral preferences going forward," Singh said.

The change in market sentiment, he added, may lead to "greater scrutiny and valuation discipline" in sectors like capital goods, power, defence and manufacturing.

(Reporting by Bharath Rajeswaran in Mumbai; Editing by Savio D'Souza)

(([email protected]; +91 9769003463;))

** Shares of Siemens SIEM.NS up 6.3% to a record 7,079.95 rupees

** Co's Q2 profit climbed 70% Y/Y; co said it will hive off energy business into a separate listed entity

** At least six analysts hiked PTs after the announcement, with average PT now at 5,462.65 rupees, up from 4,700.74 rupees on April 15

** Stock rated "buy" on average

** Stock up 75.9% YTD

(Reporting by Varun Vyas in Bengaluru)

(([email protected]))

BENGALURU, May 14 (Reuters) - India's Siemens Ltd SIEM.NS said on Tuesday it will demerge its energy business into a separate listed entity to focus on core businesses that meet the demands of shareholders at its German parent, Siemens AG SIEGn.DE.

Siemens Ltd in December 2023 had said that it was exploring a spin-off of its energy business at the behest of some of its stakeholders. Siemens Energy ENR1n.DE sold an 18% stake in the Indian entity to Siemens AG for about 2.1 billion euros to enable the demerger.

The German engineering group had spun off and listed Siemens Energy ENR1n.DE in 2020.

Post the demerger, Siemens Ltd will continue to focus on technology-focused development in infrastructure and industry segments, while the power generation segments, including renewable energy, will come under Siemens Energy India.

Shareholders of Siemens Ltd will receive one share of Siemens Energy India for every share held, the company said.

"The underlying market drivers and capital allocation requirements are fundamentally different in the energy business compared to the industrial business," said CEO and MD Sunil Mathur.

The demerger will enable both companies to pursue their specific strategies and make decisions on capital allocation, Mathur added.

Plans for the demerger come at a time when India expects its power generation to grow at its fastest pace since at least 2011-2012 in fiscal 2025. Siemens AG has been eyeing future investments in the country that is seeing higher grid upgrades and electrification programmes.

Siemens' India arm also said that it will expand two of its 32 factories in the country, with capacity expansions at two factories in the western Indian state of Goa, bringing the total capex investment to 10 billion rupees (around $120 million).

Separately, Siemens Ltd reported a 70% rise in its second-quarter profit, driven by gains from its energy and smart infrastructure businesses, which make up about 50% of the total pre-tax profit.

($1 = 83.4984 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Eileen Soreng)

(([email protected]; +918447554364;))

By John Revill

ZURICH, March 6 (Reuters) - Siemens SIEGn.DE is "very positive" about its prospects in India, managing board member Matthias Rebellius said, as the country's economy booms and offers the chance to diversify from China.

Rebellius, head of Siemens' Smart Infrastructure business, said India was a priority for future investments as it upgrades its electric grid and invests in renewable energy.

"We are very positive on India, and it is one of our main growth markets," Rebellius told Reuters in an interview.

"Not only India, but also other parts of Asia offer an attractive growth potential - not only for us but also for other companies diversifying away from China."

India's economy is on the up, with Moody's raising its growth forecast on Monday. In contrast, Chinese growth is slowing as the property sector and external demand weigh.

In addition to transportation in India, the German engineering group also sees opportunities in grid upgrades and electrification components for solar projects, Rebellius said.

Siemens' Indian subsidiary, Siemens Ltd SIEM.NS, increased sales by 18% to 179.7 billion Indian rupees ($2.17 billion) last year, according its annual report.

The unit, which includes the assets of Siemens Energy ENR1n.DE but not the Siemens Healthineers SHLG.DE business, is now 69% Siemens-owned after it recently increased its stake.

Siemens rival ABB ABBN.S last year said it was seeing some customers shift investments from China to India and other parts of Asia due to geopolitical tensions.

Although India would not replace China, Siemens's third-biggest market, it would become the focus of more investments, Rebellius said.

Globally, the executive said Smart Infrastructure, which produces products to control buildings, was seeing a return to normal ordering patterns since the COVID pandemic.

"The destocking trend seems to be over," he said.

Siemens this week also launched a sustainability label called "Siemens EcoTech", which provides information on the materials used, production, design and lifecycle, a tag Rebellius said customers increasingly wanted.

Among the products carrying the label are a new electronic circuit protection device.

"This helps us to increase sales and keep prices stable," he said.

($1 = 0.9199 euros)

($1 = 82.8740 Indian rupees)

(Reporting by John Revill;Editing by Elaine Hardcastle)

(([email protected]; +41 41 528 36 37; Reuters Messaging: [email protected]))

** Shares of Indian electrical appliances-maker Siemens SIEM.NS reverse course, rising 2.3%

** They climbed as much as 6.7% to hit record high of 4,499.8 rupees on Q4 results; consol net profit up 9% Y/Y

** Stock down roughly 1% before the results

** Stock on track to post fifth straight annual gain

** Avg analyst rating is "buy", avg PT is 4,171.73 rupees - LSEG data

** Stock up ~7% so far this year

(Reporting by Varun Vyas in Bengaluru)

(([email protected]))

BENGALURU, Feb 8 (Reuters) - Indian engineering company Thermax THMX.NS reported an 11% year-on-year rise in third-quarter profit on Thursday, helped by strong demand for its industrial products.

Consolidated profit before tax and exceptional items rose to 1.83 billion rupees ($22.1 million) in the three months ended Dec. 31, from 1.65 billion rupees a year ago.

Engineering companies in India have been benefitting from the government's push on infrastructure, clean energy and indigenisation through increased capex and production-linked incentive schemes.

The order flow at capital goods majors such as Larsen & Toubro LART.NS, Siemens SIEM.NS and Thermax have risen by an average of 28% YoY for the last six quarters, brokerage Jefferies estimated last month.

Among peers, KEC International KECL.NS reported its profit surged more than five-fold in the quarter, while Cummins India CUMM.NS said its profit increased 20.6%.

Thermax's sales of industrial products -- such as for heating, cooling, water and waste management -- increased 19.5% in the quarter.

Revenue from its industrial infrastructure business, which includes building large boilers, turnkey power plants, and wastewater treatment plants increased by 9.7%.

These two businesses accounted for more than 90% of the company's total revenue, which rose 13.4% to 23.24 billion rupees.

Thermax, which serves industries ranging from aviation, and cement to renewable energy, said its order booking for the quarter was 17% higher year-on-year at 11.54 billion rupees.

It also approved an additional capital expenditure of 450 million rupees to set up an ion exchange resin manufacturing plant.

Thermax's shares jumped 6.8% to a record high after the results, before reversing course to trade down 2.4%. The stock had risen 56.6% in 2023.

($1 = 82.9832 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Savio D'Souza)

(([email protected]; +91 7982114624;))

FRANKFURT, Feb 7 (Reuters) - Siemens Energy ENR1n.DE expects cash inflows of 600 million to 700 million euros ($646 million to $754 million) in cash inflows from divestments, including its Trench unit as well as its stake in Windar, the group's chief financial officer said.

The inflows, which will occur in the second half of the calendar year, will also include smaller unspecified divestments, with CFO Maria Ferraro saying only that the cash inflows would translate into book gains of more than 300 million euros.

Siemens Energy has already realised 2.1 billion euros in cash inflows from the sale of an 18% stake in Indian affiliate Siemens Ltd SIEM.NS. It expects to achieve the upper end of a 2.5 billion to 3.0 billion euro cash inflow target from disposals.

($1 = 0.9288 euros)

(Reporting by Christoph Steitz, Editing by Rachel More)

(([email protected]; +49 30 220 133 647;))

** Shares of engineering co Siemens India SIEM.NS rise 0.7% to 3,983 rupees

** Strong domestic capex will drive long-term growth for co, brokerage Prabhudas Lilladher says

** Raises TP to 4,359 rupees from 4,241 rupees, retains "accumulate"; median PT of 4,160 rupees from 19 analysts, as per LSEG data

** Brokerage says Siemens has diversified presence across industries including energy, power and mobility as well as strong balance sheet

** Demand environment in India is expected to remain robust across SIEM's business segments, especially in energy, smart infra, and mobility - brokerage

** Private capex is set to grow in India, with fresh capacity investments expected across sectors - Prabhudas

** SIEM shares up ~40% YTD

(Reporting by Sethuraman NR in Bengaluru)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

** Shares of India's Siemens SIEM.NS rise as much as 3.86% to 3,990.40 rupees before paring gains

** Analysts see Siemens SIEM.NS as a good play on power transmission and railways besides expecting gains from demerger of energy vertical

** Technology company, which focuses on digital industries, mobility and smart infrastructure for power transmission, reiterates strong capex and business outlook in an analyst meet

** Jefferies hikes TP to street-high of 5,000 rupees from 4,520 rupees, implied upside of 28%; retains "buy"

** Says demerger of energy business to create additional value and sees gains from pick-up in power transmission business

** Long-term order inflow prospects remain strong for SIEM's transmission, railways, data center and industrial automations businesses, says Motilal Oswal

** Avg recommendation of 18 analysts is equivalent to buy; median TP is 4,155 rupees - LSEG data

** Stock up 41.3% so far in 2023, including today's gains

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

BENGALURU, Dec 18 (Reuters) - India's Siemens Ltd SIEM.NS will explore a spin-off of its energy business at the behest of some of its stakeholders, the electrical appliances-maker said on Monday, sending its shares to a record high.

Its board also approved the incorporation of a unit in the financial hub of Mumbai, if and when the company decides to implement the demerger, it said in an exchange filing.

Its German affiliate Siemens Energy ENR1n.DE, one of the shareholders calling for the demerger, has been reviewing options to exit some markets and products of its struggling wind turbine business in a bid to shore up its balance sheet after swinging to an annual net loss last month.

Siemens Energy has also been considering selling some of its 24% stake in Siemens Ltd to its former parent Siemens AG SIEGn.DE.

Germany-based Siemens AG and its unit are also the other shareholders calling for a demerger of the Indian energy business.

Shares of Siemens Ltd, which has added nearly 50% in value so far this year, rose as much as nearly 7% after the news.

Apart from the energy segment, which includes manufacturing transformers, the Indian firm also makes home appliances, smart infrastructure, and provides cyber-security services.

(Reporting by Varun Vyas in Bengaluru; Editing by Sonia Cheema)

(([email protected];))

Nov 28 (Reuters) - Siemens Ltd SIEM.NS:

• DANIEL SPINDLER TENDERED RESIGNATION AS CFO

• APPROVED INVESTMENT OF ABOUT 4.16 BILLION RUPEES TOWARDS CAPACITY ADDITION FOR POWER TRANSFORMERS AND VACUUM INTERRUPTERS

• SEPT-QUARTER CONSOL NET PROFIT 5.71 BILLION RUPEES VERSUS PROFIT 6.52 BILLION RUPEES

• SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 58.08 BILLION RUPEES VERSUS 46.57 BILLION RUPEES

• DIVIDEND 10 RUPEES PER SHARE

• APPOINTMENT OF WOLFGANG WRUMNIG AS EXECUTIVE DIRECTOR AND CFO

Source text for Eikon: ID:nNSE13hmhR

Further company coverage: SIEM.NS

(([email protected];;))

Nov 23 (Reuters) - Siemens Ltd SIEM.NS:

• GOT ORDER IMPOSING SERVICE TAX LIABILITY OF 236.8 MILLION RUPEES

• WILL SEEK APPROPRIATE LEGAL REMEDY TO CONTEST THE DEMAND

• DOES NOT FORESEE ANY MATERIAL FINANCIAL IMPACT

Source text for Eikon: ID:nBSEbq5hrL

Further company coverage: SIEM.NS

(([email protected];))

MUNICH, Nov 15 (Reuters) - Siemens Energy ENR1n.DE is reviewing the structure of Siemens Gamesa, it said on Wednesday, in a bid to return to profit the struggling wind division, which caused a 4.6 billion euro ($5.0 billion) annual net loss for the group.

Siemens Energy a day earlier secured a 12 billion euro credit line from private banks that were partly backstopped by the German government, removing a major concern for investors that feared the group could lose out on business as result.

($1 = 0.9189 euros)

(Reporting by Christoph Steitz; editing by Miral Fahmy)

(([email protected]; +49 30 220 133 647;))

Adds details from sources, updates shares

By Christian Kraemer and Alexander Hübner

BERLIN/MUNICH, Nov 14 (Reuters) - The German government on Tuesday said it had decided to backstop Siemens Energy ENR1n.DE with guarantees worth 7.5 billion euros ($8.1 billion) as part of a deal with other stakeholders to help the troubled energy company fulfil its order book.

Deepening problems at the firm's wind turbine unit Siemens Gamesa and a subsequent move by S&P to cut the group's long-term credit rating to BBB-, just one notch above junk, during the summer had made banks more reluctant to provide guarantees.

Siemens Energy in October disclosed talks with the government, banks and former parent Siemens AG SIEGn.DE over what sources said were guarantees for project and warranty bonds needed to safeguard the firm's 109 billion euro order book.

"The group has a problem as a result of the takeover of the Spanish company Gamesa, faulty wind turbines, which in turn has put the company, which is otherwise in good health and has full order books, in a precarious situation," Economy Minister Robert Habeck said.

Berlin's decision to step in reflects its view of Siemens Energy, which makes gas and wind turbines as well as large converter states, as a maker of vital equipment for the country's transition away from polluting fossil fuels.

The guarantees are part of a package totalling 15 billion euros agreed with private banks and other stakeholders and would also impose a pause on dividends and higher level bonuses at Siemens Energy, the economy ministry said in a statement.

Private banks were expected to provide Siemens Energy with guarantees worth 12 billion euros while Siemens Energy would seek another 3 billion from other sources, the statement said, adding it was conditional on the final sign-off of all parties.

The 3 billion euros in guarantees will likely come from international stakeholders such as Denmark and Spain, where Siemens Energy has a significant presence, two people familiar with the matter said.

GUARANTEES, NOT CASH

The government will provide the 7.5 billion euros as a counter guarantee to the private banks in order for them to come through, the statement said.

"We are pleased with the German government's clear support for Siemens Energy and the commitment to the rapid implementation of projects to make the energy transition a success," Siemens Energy said in a statement.

"We will provide further details at our annual press conference on November 15."

In a separate statement, Siemens AG said it had been working to find a solution and would share further details at a later stage.

Shares in Siemens AG and Siemens Energy closed up 2.75% and 2.95%, respectively, following the news.

Reuters first reported last week that all stakeholders had reached an agreement in principle to cover the guarantees, helping the group's shares to recover after news of the discussions pushed the stock to a record low last month.

Siemens AG, which spun off Siemens Energy in 2020, is also expected to provide support by buying most of the 24% stake Siemens Energy owns in Siemens Ltd SIEM.NS, an Indian joint venture, sources have told Reuters.

Siemens AG will pay more than 2 billion euros for around 18% of Siemens Ltd, which would bring its own stake in the joint venture to around 70%, the sources said.

Justice Minister Marco Buschmann had defended the deal ahead of the announcement.

"It's not about the state somehow saving a company without a business model, a broken company," said Buschmann in an interview with RTL and ntv. He stressed the deal did not involve subsidies. "It's not about cash, it's about guarantees."

($1 = 0.9240 euros)

(Reporting by Christian Kraemer, Riham Alkousaa, Markus Wacket, Andreas Rinke, Alexander Hübner, Christoph Steitz and Linda Pasquini; Writing by Madeline Chambers and Matthias Williams; Editing by Kirsti Knolle and David Evans)

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Adds politician quote in paragraphs 8-9

By Alexander Hübner, Tom Käckenhoff, Riham Alkousaa and Christoph Steitz

MUNICH/DUESSELDORF/BERLIN/FRANKFURT, Nov 13 (Reuters) - Siemens Energy ENR1n.DE will present a deal for billions of euros in project-related guarantees backed by the German government when it releases annual results on Wednesday, three sources familiar with the matter told Reuters.

The company in October disclosed talks with the German government, banks and former parent Siemens AG SIEGn.DE over what sources said were 15 billion euros ($16 billion) in guarantees for project and warranty bonds needed to safeguard the firm's 109 billion euro order book.

Of the 15 billion, banks involved in the talks will bear around 12 billion euros, of which the government would backstop 7.5 billion, the people said, adding a solution had also been found for the remaining 3 billion, without specifying.

"The aim is to have an agreement ready by Wednesday," a third source told Reuters, adding that final details would be determined following a Siemens AG board meeting on Tuesday.

Shares in Siemens Energy rose as much as 7% on the details of the agreement, which were first reported by Handelsblatt, and were up 4.9% at 1454 GMT.

Siemens Energy, Siemens AG and the German economy ministry all declined to comment.

Reuters first reported last week that all stakeholders had reached an agreement in principle to cover the guarantees, helping the group's shares to recover after news of the discussions pushed the stock to a record low last month.

A member of the Free Democrats, junior partner in the German government coalition, called for the removal of Siemens Energy Chairman Joe Kaeser, who as Siemens CEO oversaw the botched merger of Siemens and Gamesa as well as Siemens Energy's spin-off.

LOST TRUST

"Removing him would be the right step to rebuild lost trust in the company's future path," said Michael Kruse, energy policy spokesperson for the party's parliamentary group.

Siemens Energy makes gas and wind turbines as well as large converter stations, vital energy equipment for the country's efforts to gradually phase out fossil fuels, prompting Berlin to seek backing for what it considers a systemically important player.

Deepening problems at the group's wind turbine unit and a subsequent move by S&P to cut the group's long-term credit rating to BBB-, just one notch above junk, in July had made banks more reluctant to provide the guarantees.

Siemens AG, which spun off Siemens Energy in 2020, will also provide support by buying most of the 24% stake Siemens Energy owns in Siemens Ltd SIEM.NS, the two group's Indian joint venture that was not disentangled during the spin-off.

Siemens AG will pay more than 2 billion euros for around 18% of Siemens Ltd, which would bring its own stake in the joint venture to around 70%, the people said.

That stake is currently valued at around 219.6 billion Indian rupees ($2.64 billion), meaning Siemens AG would get the stake at a significant discount, confirming a Reuters report from last week.

Siemens Energy's remaining stake in Siemens Ltd, as well as an annual 250-million-euro payment it makes to Siemens AG for the use of the trademark rights, will be used as a security against the guarantees, one of the people said.

($1 = 0.9349 euros)

($1 = 83.2917 Indian rupees)

(Reporting by Tom Kaeckenhoff, Riham Alkousaa and Alexander Huebner and Christoph Steitz; Writing by Miranda Murray; Editing by Linda Pasquini, Christina Fincher, David Evans)

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