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Siemens Weighs Distributing Siemens Healthineers Shares

A spin-off could boost Siemens Healthineers' valuation and allow Siemens to focus on its core businesses. Shareholders await clarity on the future of the healthcare subsidiary.

In this picture I can see photos, words, logo, signature and numbers on the brochure.
In this picture I can see photos, words, logo, signature and numbers on the brochure.

Siemens Weighs Distributing Siemens Healthineers Shares

Siemens, the German engineering behemoth, is considering distributing its shares in Siemens Healthineers to its own shareholders, a move that could have significant tax implications for investors. Bernd Montag, CEO of Siemens Healthineers, could play a pivotal role in these decisions.

Siemens Healthineers, valued at approximately 52 billion euros, could benefit from a resolution to the overhang of shares from its parent company. The market has increasingly called for Siemens to separate from its healthcare subsidiary, which could unlock potential for both companies.

Siemens, which currently holds around 71 percent stake in Siemens Healthineers, could retain a minority stake and sell it later to mitigate potential tax implications. However, a spin-off of Siemens Healthineers would require shareholder approval, making it unlikely before 2026.

Siemens' shares were among the top gainers on Thursday, trading just below their record high. The company will host a capital market day on November 13 to present its future strategy and approach to Siemens Healthineers, originally planned for December. The outcome of these decisions could significantly impact both Siemens and Siemens Healthineers.

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