Siemens (NYSE:SI) will retain a majority stake in its Healthineers business after its planned initial public offering or spinout, CEO Joe Kaeser told a Swiss newspaper this week.
The healthcare business, which Siemens rebranded last year to worldwide scorn, is the company’s most profitable unit with an estimated enterprise value of roughly €36 billion to €37 billion ($39 billion to $40 billion). The German industrial conglomerate is mulling the idea of an IPO, Kaeser said last month.
“We will keep the majority. It is 1 of our most attractive businesses and will be the 3rd pillar alongside renewable energy and the industrial Siemens,” Kaeser told the Finanz und Wirtschaft newspaper.
But the flotation might not take place on a U.S. exchange now that the Trump administration is in power, he added, citing Frankfurt and Hong Kong as potential alternatives.
Healthineers last month repored boosting its fiscal 1st-quarter profits by nearly 15% despite flat sales, as Siemens overall shares surged to a 17-year high on its overall profit increase of nearly 25%.
The healthcare division reported profits of €620 million ($668.8 million) on sales of €3.28 billion ($3.54 billion) for the 3 months ended Dec. 31, for bottom-line growth of 14.6% on a -0.2% sales decline.
Quarterly profits for the Siemens overall were €1.94 billion ($2.09 billion), or €2.32 ($2.50) per share, on sales of €19.12 billion ($20.62 billion). Analysts were looking for earnings per share of €1.66 on sales of €19.56 billion.
Siemens raised its earnings outlook for fiscal 2017, saying it now expects to log EPS of €7.20 to €7.70, up from prior guidance for €6.80 to €7.20.
Material from Reuters was used in this report.
