FRANKFURT/MADRID (Reuters) -Siemens Energy is thinking about a plan to buy the last third of Siemens Gamesa that it doesn’t already own. The company said on Wednesday that it is doing this to try to solve long-standing problems at the Spanish-listed wind turbine maker.
Siemens Energy is getting more and more pressure from its shareholders to take control of Siemens Gamesa, which it has a stake in because it was spun off from Siemens.
Siemens Energy announced in a statement, “Management is exploring a cash tender offer for all existing shares of Siemens Gamesa Renewable Energy (OTC:GCTAY) S.A. in order to delist.”
“The result of this consideration is uncertain. There has been no decision taken, and there is no assurance that a deal will occur.“
Siemens Gamesa shares increased by 11%, while Siemens Energy shares increased by 3.4%.
A 33 percent stake in Siemens Gamesa was valued at 3.14 billion euros ($3.31 billion) at the close of trading on Tuesday.
Sources who did not want to be named told Reuters earlier this year that Siemens Energy was figuring out how best to buy the remaining share and that a deal could be made by summer.
The Spanish subsidiary has made Siemens Energy’s operational problems worse, and shareholders have asked management to take full control to fix things.
Siemens Gamesa started a reorganization plan in April to fix problems with the supply chain, delays in important projects, and rising costs, all of which have hurt the company’s earnings and led to three profit warnings in less than a year.
The company is attempting to increase wind turbine pricing to offset rising raw material costs and fix internal production challenges with the 5.X onshore wind turbine platform by year’s end.
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