Dive Brief:
- Siemens said Friday it will ask shareholders to vote on a plan to spin off Siemens Healthineers shares at its next annual meeting in February.
- The two companies have made substantial progress on preparing the transaction structure since it was first unveiled in November, Siemens said.
- The German industrial giant intends to transfer 30% of Siemens Healthineers shares to Siemens stockholders, giving up its controlling stake in the imaging and diagnostics company.
Dive Insight:
Reducing its stake in Siemens Healthineers will allow Siemens to focus on its core technology portfolio with greater flexibility for capital allocation, the parent company said when it first announced the spinoff. At the time, Siemens owned 67% of Siemens Healthineers.
Since then, both the separation and regulatory clarification processes have advanced, Siemens said, but final confirmation from regulators remains outstanding. The preparations for the spinoff include a review of all key contractual relationships, the company added.
Siemens stockholders will receive Siemens Healthineers shares directly under the spinoff plan.
Siemens Healthineers has been publicly listed since March 2018. Siemens’ decision to reduce its stake followed a strategic review of how both organizations could best realize their full potential and reach new areas of growth.
