- The stock price of Siemens AG (OTCMKTS: SIEGY) increased by over 3% this past week. This is why it happened.
The stock price of Siemens AG (OTCMKTS: SIEGY) increased by over 3% this past week. Investors are responding positively to a couple of reports from the company.
The first report is that Siemens announced it will be separating its large drive applications (LDA) business. This unit produces heavy-duty electrical drive systems designed for ships and mines. Over 7,000 Siemens employees including 2,200 will be affected by this change according to Handelsblatt via Reuters.
“LDA is one of the leading players in the market and in a strong position overall and has performed very well in recent months,” said a Siemens spokesman via Reuters. “We have now decided to carve out the LDA activities into separate legal entities. We want to give this business additional autonomy and entrepreneurial freedom so that it can focus more sharply on its markets and customers.”
And the second report is about clean energy storage company Fluence is planning to file for about a $4 billion valuation through a U.S. initial public offering. Fluence is a joint venture between Siemens AG and AES Corp. The company is looking to offer 31 million shares priced between $21 and $24 each. At the top of this range, the IPO would bring in $744 million in proceeds for the company. Fluence is known for serving major utilities and industrial businesses with increased efficiencies delivered through a digital platform designed for renewables. Subsidiaries of AES and Siemens are going to continue to hold over 91% of the voting power in the company following the offering.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
