In his address to the shareholders after the vote to approve the delisting of the firm, Christian Bruch, the former executive chairman of the board of directors of Siemens Gamesa, cautioned that the European wind sector is in an uncertain condition.
The wind industry suffers significant financial difficulties despite significant expenditures into renewable energy, according to Bruch.
To get back on track, Siemens Gamesa has introduced the Mistral strategy program, which the business must now rigorously implement. The delisting will help the leadership team to concentrate on the crucial financial turnaround fully. The company has concurrently been discussing the conditions necessary for the strategically significant wind industry’s success with regulators, decision-makers, and our customers at all levels.
Broad consensus over Siemens Gamesa delisting
By 98.43% of the votes cast by the shareholders present in person or represented by proxy, the Extraordinary General Meeting of Shareholders of Siemens Gamesa, held in Bilbao on January 25, approved the delisting of the business.
This procedure comes as part of Siemens Energy’s submitted cash tender offer in May 2022. The intention is the maximization of the combined potential of the two businesses.
The National Securities approved the offer Market Commission (CNMV) in November 2022, and during the acceptance period, which ended on December 13, 77.88% of Siemens Gamesa’s minority shareholders tendered their shares. As a result, Siemens Energy now owns 92.72 percent of Siemens Gamesa.
What is left is the completion of all purchase transactions
The delisting of the Siemens Gamesa shares is now subject to approval by the CNMV and the completion of all purchase transactions following the shareholders’ approval.
Siemens Energy put a standing purchase order at EUR 18.05 for the remaining Siemens Gamesa shares on December 23, 2022, and it will remain in effect until the CNMV stops its trading.
The company’s bylaws went through amending at the meeting to conform to the rules for non-listed businesses, and shareholders approved all items on the agenda.
In order to streamline decision-making and simplify the current governance structure, Siemens Gamesa will reduce the number of directors on the board from ten to three. After Siemens Gamesa delisting, board members Francisco Belil, Gloria Hernández, Harald von Heynitz, Maria Ferraro, Rudolf Krämmer, and Mariel von Schumann departed. They handed in their resignations in December 2022.
Together with Anton Steiger, who serves as a non-executive proprietary director, the new board will continue to be led by chairman Christian Bruch and CEO Jochen Eickholt.
Siemens Gamesa suffered a huge net loss
According to earlier this month’s reports, Siemens Gamesa suffered a net loss of EUR 760 million in the first three months of the fiscal year 2023. It’s primarily a result of costs associated with a rise in the failure rates of particular components discovered during an assessment of the installed fleet.
The manufacturer of turbines reported a net loss of EUR 940 million at the end of the fiscal year 2022. They linked the outcomes to market imbalances brought on by ongoing supply chain interruptions. Geopolitical tensions and more COVID-19 waves exacerbated them, as well as rising pressure on input and shipping prices.