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.

http://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/siemens-india-to-hive-off-healthcare-arm-for-rs-3050-crore/articleshow/51259082.cms

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