Siemens (Pakistan) Engineering Company, (PSX: SIEM), has announced the approval of the sale of its energy business to a non-affiliated entity for Rs. 17.82 billion. The decision was disclosed in a stock filing on Monday.

The sale aligns with the 2020 spin-off of the energy business by Siemens AG, the parent company. The board approved the transaction with a majority vote during a meeting held on October 11, 2024. The energy business segment will be sold and transferred as a going concern to Siemens Gamesa Renewable Energy (Private) Limited, a non-affiliated Siemens Energy Group entity, for an aggregate consideration of approximately Rs. 17.82 billion, based on the valuation date of March 31, 2024.

The net book value of the energy business as of the valuation date was approximately Rs. 17.61 billion. The final cash amount to be received from the buyer, along with any gain or loss on the transaction, will be determined based on the net book value as of the effective date, which is the transaction closure date, and other contractual subsequent events as per the agreement terms.

The completion of the transaction is contingent upon obtaining shareholders’ and other regulatory approvals, as noted in the filing.

Following the announcement, SIEM’s stock price rose by 10 percent, or Rs. 47.5, to Rs. 522.51, with 2,130 shares traded on Monday.