Institutional investors vote against Siemens’s sale of motors business

Public institutional investors of Siemens voted against the India-listed entity’s resolution to sell its motors business to the parent company’s German arm, in post ballot voting which concluded on Friday evening.

Late yesterday, Siemens informed the exchanges that members of the company had not approved the resolution related to the proposed sale and transfer of the low voltage motors and geared motors businesses to Siemens Large Drives India Private Limited. Nearly 78.5 per cent of the public institutional investors voted against the deal, company disclosures show.

On May 19, Siemens’ board approved the sale and transfer of its low voltage motors and geared motors businesses to Siemens Large Drives India Private Limited, a subsidiary of Innomotics GmbH, which in turn is a subsidiary of Siemens AG. The sale was to take effect from October 1, subject to conditions, including requisite shareholder approvals. The deal was agreed upon at a value of Rs 2,200 crore, which was a bone of contention with minority shareholders.