Three major Siemens Energy shareholders want the company to prioritise repairing its loss-making wind turbine unit before any spin-off, Reuters has reported.

Reuters said the stance reflects support for stabilising the business first and only then assessing strategic options, following pressure from US activist investor Ananym Capital for a break-up.

Ananym Capital in December disclosed a stake in Siemens Energy and pushed for a spin-off of Siemens Gamesa, saying it could be worth $10 billion, according to the news agency.

Group management has said the idea has merit but wants to restructure the business and is targeting breakeven this year after a €1.36bn loss in 2025.

Shareholders are expected to debate the future of Siemens Gamesa at the annual general meeting on 26 February.

Tobias Klaholz, fund manager at DWS, said meeting the short-term priority of stabilising the unit and significantly improving profitability was crucial.

“It therefore seems too early for a possible spin-off. In the medium term, however, a review of Siemens Gamesa definitely makes sense,” he said.

Ingo Speich of Deka Investment also said the focus should be on Siemens Gamesa’s restructuring.

“However, if there are new significant burdens, this could quickly change. Then the future of the wind division would have to be reconsidered more broadly,” he said.

Charlie Penner, Ananym’s co-founder, said Siemens Gamesa would have to be strengthened before any spin-off.

“As that day gets closer and as Gamesa approaches profitability, the board should be prepared to act decisively,” he said.

Reuters reported that shareholders believe Siemens Energy’s share price performance, supported by demand for infrastructure to power artificial intelligence technology, has provided some cover for management.

Union Investment fund manager Maria Mihaylova said Siemens Gamesa was an “important part of the turnaround story of Siemens Energy”, and that there was no need for a spin-off.

More information:https://renews.biz/110070/siemens-energy-investors-urge-wind-focus/