Siemens Divests 10% Stake In Public Communication

German transnational Siemens has divested 10 per cent equity stake in Siemens Public Communication Networks (PCN) by participating in the latter's buy-back offer.

The move, Siemens managing director Juergen Schubert said, is in line with the overall strategy of Siemens to focus on its core competencies.

Siemens informed the Bombay Stock Exchange that it had offered 22 lakh shares in Siemens PCN at Rs 61 per share for a total consideration of Rs 13.42 crore.

Consequently, Siemens' holding in Siemens PCN now stands reduced from 30 per cent (53.25 lakh equity shares) to approximately 20 per cent (31.25 lakh equity shares), the company said.

In a press release issued by the company, Schubert said, "This stands to benefit both the companies. Siemens PCN had surplus funds and was seeking its optimum utilisation. It was only logical to deploy them towards buying back part of the equity while enhancing shareholders value."

"Consequently, Siemens also stands to gain as this would enables the company to seek investment avenues in order to strengthen its core businesses," he added.

Siemens PCN, a 70:30 (prior to buy-back) joint venture between the German parent Siemens AG and Siemens, is a public telecom infrastructure and carrier networks provider. It was formed in 1997 when Siemens spun off its telecommunication division as a going concern as a part of the company's restructuring programme at that point of time.