Siemens Gamesa: Downgrade from Reduce to Sell (T.P. 15,1 eur/shr) after Siemens Energy bid

Siemens GamesaSiemens Gamesa: From Reduce to Sell on Siemens Energy Bid

Alphavalue | As we flagged yesterday, finally on Saturday there was confirmation of Siemens Energy’s bid for 100% of Gamesa at 18,05 euros/share in cash (12.3 billion euros) with the aim of integrating the latter and delisting it.

As you know, Siemens Energy already has 67,12% of Gamesa’s capital. The price being offered represents a premium of 27,7% with respect to the final closing price on May 17 2022. Excluding the treasury stock, the bid will entail a disbursement of 4.040 billion euros if it is fully accepted.

Gamesa’s board met on Sunday to back the offer. Siemens Energy CEO was very optimistic and highlighted the strong combination to create a more “solid” leader. Gamesa’s HQ could fly off to Munich from Zamudio.

Shares in Gamesa rose 6,24% on Monday. This market move leads us to lower our recommendation on the stock to “Sell” from “Reduce”.

Siemens Gamesa Renewable Energy (Sell vs Reduce, Target Price 15,1 euros/share).

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