Siemens Energy announces capital increase to help refinance Gamesa deal

(Reuters) – Siemens Energy (ENR1n.DE) announced on Wednesday a capital increase via a private share placement to help refinance its 4 billion euro ($4.22 billion) takeover of wind power subsidiary Siemens Gamesa.

The offer and sale of new shares will be made exclusively to institutional investors in the placement initiated immediately, it said.

Siemens Energy’s share capital will be increased by up to 10% through the issuing of new shares, which carry full dividend rights for the current fiscal year.

Delivery of new shares to investors is scheduled for March 23, the company said.

Citigroup (C.N) and SocGen (SOGN.PA) are running the deal, two sources familiar with the plan told Reuters.

Siemens Energy shares slid 7% on Wednesday in a wide sell-off in stock markets worldwide, closing the day on Xetra at 18.23 euros per share.

Major shareholder Siemens (SIEGn.DE) has repeatedly ruled out investing further capital in Siemens Energy.

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