Siemens AG will spend about 1 billion euros ($1.4 billion) to raise its stake in its booming Indian subsidiary Siemens Ltd, it said on Monday.

Siemens said in a statement on Monday it planned to raise its stake to 75 percent from about 55 percent, offering 930 rupees per share or a 28 percent premium to Friday's closing price.

The offer sent Siemens Ltd shares up by more than 18 percent to 867 rupees by 0832 GMT. Siemens shares fell 0.4 percent amid a 0.8 percent drop in the blue chip Dax index.

The conglomerate is enjoying strong growth in business in emerging markets, with new orders from India alone up 160 percent in the latest quarter, boosted by infrastructure and power technology demand.

Siemens Ltd India had revenue of around 1.5 billion euros and profit from operations of around 200 million in 2010.

The move follows that of Swiss rival ABB Ltd, which last year raised its holding in its Indian subsidiary to 75 percent, paying $1 billion for the stake.

Siemens said that pending regulatory approval, the offer is expected to open on March 25 and close on April 13.

HSBC Securities and Capital Markets will manager the offer, the statement said.

Leave Your Comment(s)