In a strategic move to consolidate its shareholding in Siemens (Pakistan) Engineering Company Limited, Siemens Aktiengesellschaft (S’AG), the German parent company, has finalized a significant share purchase agreement. This acquisition aims to enhance S’AG’s stake in its Pakistani subsidiary, reinforcing its commitment to the region’s economic and industrial growth.
On November 1, 2024, Siemens (Pakistan) Engineering Co. Ltd. informed the Pakistan Stock Exchange about this transaction, carried out in compliance with the Securities Act, 2015, and the rulebook of the Pakistan Stock Exchange. With an existing 74.65% ownership, Siemens AG moved forward to purchase additional shares, further increasing its influence over the company.
Details of the Strategic Purchase
The agreement, known as the Share Purchase Agreement (SPA), was executed between Siemens AG and National Investment Trust Limited (NIT). NIT, along with other funds under its management, held approximately 13.85% of Siemens Pakistan’s issued and paid-up capital. This substantial block of shares amounted to 1,142,611 shares, each priced at PKR 1,516, bringing the transaction’s total value to PKR 1,732,198,276.
The shares acquired in this deal are expected to increase Siemens AG’s overall stake in Siemens Pakistan to a commanding 88.51%. This strategic purchase underscores Siemens AG’s long-term vision and dedication to Siemens Pakistan’s growth and aligns with the company’s broader investment strategies in emerging markets.
Compliance with Regulatory Requirements
Siemens Pakistan has assured that this transaction complies with clause 5.6.4 of the Pakistan Stock Exchange rulebook, ensuring transparency and adherence to legal standards. The final settlement of the transaction will be made in due course, adhering to all relevant Pakistani laws.
A company representative emphasized, “The details of the share purchase will be presented in the subsequent board meeting, and all relevant authorities have been informed, ensuring a smooth transition in compliance with the required regulatory frameworks.”
Implications for Siemens Pakistan
This increased ownership by Siemens AG is expected to provide greater operational flexibility and resources for Siemens Pakistan. Siemens AG’s strengthened presence is likely to drive innovation, support local employment, and enhance the engineering and technology capabilities within Pakistan. Moreover, as Siemens Pakistan deepens its alignment with the parent company, there is potential for introducing new technologies and services tailored for the Pakistani market.
Siemens Pakistan’s stakeholders and the general public can expect further developments as the company continues to play a pivotal role in Pakistan’s engineering and industrial sectors.