To consider the distribution of 50 per cent of sale consideration as reduced by applicable Capital Gains Tax and Dividend Distribution Tax, as a special dividend, at the first Board meeting after completing the proposed transaction
The Board of Directors of Siemens has approved the sale and transfer of its healthcare undertaking, as a going concern on a slump sale basis, for a sale consideration of Rs 30,500 million, to Siemens Healthcare, a subsidiary of Siemens AG. The transaction is subject to requisite regulatory, statutory and shareholder approvals.
The consideration for the proposed transaction, recommended by the Audit committee, is based on the valuation undertaken by two independent valuers – Deloitte Touche Tohmatsu India LLP and KPMG India. Citigroup Global Markets India is acting as the transaction advisor to Siemens.
Sunil Mathur, MD and CEO, Siemens said, “This transaction follows Siemens AG’s global strategy of managing its healthcare business under a separately-managed company. Over 85 per cent of Siemens’ healthcare revenues are currently derived from products imported from Siemens AG. Significant management focus, including investments will be needed in finding appropriate products and solutions to meet the growing demands of the Indian market. This transaction will enable Siemens AG to further strengthen its focus on the healthcare segment in India, by aligning it with its global strategy and management framework.”