Siemens' decision on sale of mechanical drives business attracts criticism

Company says segment had low profitability

Siemens last week announced its plan to sell the mechanical drives (MD) business to a subsidiary of the parent firm. The decision has attracted criticism from both analysts and proxy advisory firms.

“Siemens India short-changing minority shareholders again. The slump sale of the mechanical drives business at Rs 440 crore,” stated a tweet by Ingovern, a proxy advisory firm, on Monday.
 

Last week, Siemens said its board had approved the sale of its MD business to Flender Drives, a subsidiary of Flender GmbH, which, in turn, is a subsidiary of Siemens AG. The deal was approved for a consideration of