The Hindu Business Line : Siemens consolidates telecom activities

SIEMENS Ltd has decided to purchase 100 per cent stake in its telecom company, Siemens Public Communication Networks Pvt Ltd (SPCNL), and 51 per cent equity stake in Siemens Shared Services Pvt Ltd.

The purchase of 1,24,25,000 shares of Siemens Public will be for a total consideration of Rs 195 crore, which works out to approximately Rs 156.94 per equity share of Rs 10 each, said a statement from the company.

Siemens Public, a 100 per cent subsidiary of Siemens AG, is engaged in the business of providing telecom network equipment including supply, design and installation and software development.

The 51 per cent stake in the Bangalore-based Siemens Shared Services will be acquired from Siements Shared Services LLC, USA, for Rs 11.1 crore, or at Rs 52.26 per share.

The balance 49 per cent in the company is held by Siemens Information Systems Ltd, a wholly-owned subsidiary of Siemens Ltd.

Both these transactions are subject to all applicable statutory and regulatory approvals, said a company statement.

Commenting on the decision to acquire Siemens Public, Mr Juergen Schubert, Managing Director, Siemens Ltd, said, "The telecommunication sector is growing at a healthy rate and our telecom network infrastructure company, SPCNL, has today emerged as one of the leading players in its area of operation. With this acquisition, the telecommunication businesses of Siemens in India, now known as Siemens Com comprising basically of Enterprise Networks and Public Communication Networks, are consolidated.''

"The acquisition of the shared services arm will help us provide enhanced value-added business processing services for our own operations and for our customers,'' he said.

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