Research Update: Siemens Energy 'BBB/A-2' Ratings Affirmed; Outlook Remains Negative On Gamesa Renewable Energy Buyout

Siemens Energy has announced a voluntary cash tender offer to acquire the remaining 32.9% of share capital in Siemens Gamesa Renewables Energy S.A. (Siemens Gamesa) for about €4 billion, with the intention to delist and fully integrate Siemens Gamesa, with up to €2.5 billion of the purchase price financed via equity or equity-like instruments. Siemens Energy already owns 67.1% in Siemens Gamesa, which accounts for about one-third of Siemens Energy's revenue. The acquisition would result in Siemens Energy owning up to 100% of Siemens Gamesa and allow Siemens Energy to exert full control over Siemens Gamesa and drive the turnaround of its challenged onshore business as well as realize costs and revenue synergies over the next few years. At the

...- Siemens Energy has announced a voluntary cash tender offer to acquire the remaining 32.9% of share capital in Siemens Gamesa Renewables Energy S.A. (Siemens Gamesa) for about 4 billion, with the intention to delist and fully integrate Siemens Gamesa, with up to 2.5 billion of the purchase price financed via equity or equity-like instruments. - Siemens Energy already owns 67.1% in Siemens Gamesa, which accounts for about one-third of Siemens Energy's revenue. - The acquisition would result in Siemens Energy owning up to 100% of Siemens Gamesa and allow Siemens Energy to exert full control over Siemens Gamesa and drive the turnaround of its challenged onshore business as well as realize costs and revenue synergies over the next few years. - At the same time, following the close of the acquisition in fiscal 2023 (ending September 2023), we expect a deterioration in pro forma credit metrics to about 50% funds from operations (FFO) to debt and debt to EBITDA of about 1.5x before recovering...

Research Update