Siemens Ltd on Friday agreed to sell its healthcare business for a consideration of Rs 3,050 crore, to, its German parent’s wholly owned subsidiary in India. The Siemens board is considering to distribute 50% of the sale consideration as special dividend after taking into account the applicable capital gains tax and dividend distribution tax.
The sale and transfer of its healthcare undertaking, as a going concern on a slump sale basis, to Siemens Healthcare Pvt Ltd, a wholly owned subsidiary of Siemens AG, is subject to regulatory and shareholder approvals, the company said. The transaction, follows Siemens AG’s global strategy of managing its healthcare business under a separately managed company, giving it “entrepreneurial freedom” and “flexibility” to meet the challenges facing this industry. Over 85% of Siemens’ healthcare revenues is derived from products imported from Siemens AF and its subsidiaries.