Siemens (Pakistan) Engineering Company Limited (PSX: SIEM) has approved the sale and transfer of its Energy Business Segment to Siemens Gamesa Renewable Energy (Private) Limited, a non-affiliated entity of the Siemens Energy Group. The company disclosed the development in a filing to the Pakistan Stock Exchange (PSX) on Wednesday.

The transaction is valued at approximately Rs. 17.82 billion, based on the valuation date of March 31, 2024. According to the filing, the net book value of the Energy Business Segment as of the valuation date was approximately Rs. 17.61 billion.

The final cash consideration to be received from the buyer, as well as the gain or loss on the transaction, will be determined based on the net book value as of the effective date (transaction closure date) and certain other contractual subsequent events. These calculations will be made in accordance with the terms and conditions outlined in the agreement to be executed with Siemens Gamesa Renewable Energy.

The closure of the transaction is subject to approval from shareholders and relevant regulatory authorities. The company has not yet provided a timeline for the completion of the deal.