Industrial giant Siemens plans to list more than half its lighting unit Osram on the stock market later this year, in what is set be the biggest German initial public offer (IPO) in years.
The group is also gearing up for a shake-up of activities that will add a fourth division, focused on making cities more energy efficient, and help it reach for a medium-term annual sales target of €100 billion.
'We expect to become a minority shareholder and spin Osram off as soon as it is listed on the stock exchange,' Siemens finance director Joe Kaeser told a telephone news conference.
Siemens announced late on Monday that it would sell most of Osram but remain 'a long-term anchor shareholder'. Mr Kaeser said Siemens would retain at least a 'qualified minority' in Osram, but without providing details.
That could mean for example a stake of 25% plus one share, which would allow Siemens to have a say on strategic decisions.
With an estimated total value of €4.7 billion for Osram, the IPO is set to be the biggest in years in Germany.
Meanwhile, Siemens also said yesterday that it would also create a new division dubbed Infrastructure & Cities, its fourth pole of activity alongside Industry, Energy and Medical Equipment. Siemens estimated the Cities market at around €300 billion.
In its last financial year, the industrial giant recorded annual sales of a little more than €75 billion.
Based like Siemens in Munich, southern Germany, Osram makes traditional bulbs and high-tech products like LEDs (light-emitting diodes) and OLEDs (organic light-emitting diodes). Although it is very profitable, the company's focus on consumer products is at odds with the current strategy of orienting Siemens towards industrial clients.
Osram, which employs 40,000 people worldwide, also needs major investments to complete the transformation of its operations to LED technology.
