Siemens AG received the go-ahead from a German court to list its Osram lighting unit, thwarting a group of shareholders seeking to block the spinoff.
Appeals court Judge Martin Kainz in Munich rejected the arguments from the investors who said that Europe’s largest engineering company hadn’t properly communicated aspects of the listing at its annual general meeting.
The group of stockholders “did not participate adequately in the AGM,” Kainz said. They had said that acoustic problems at the Jan. 23 meeting meant they didn’t fully understand aspects of the listing.
While 98 percent of shareholders approved the spinoff of Osram in January, the group of investors sued to block its legal registration. Siemens had canceled a plan for an initial public offering of the business last year and decided investors will instead receive one Osram share for every 10 shares they own. Siemens “welcomes the court’s decision,” it said in an e-mailed statement today. It “allows us to proceed quickly with the spinoff.”
Siemens, whose shares last year returned only one third of the German DAX benchmark index’s advance, has also earmarked units such as airport luggage systems, mail automation and water technology for disposal as it’s combing through its portfolio to weed out laggards.
The Munich-based company in January said that units making trains and low-voltage gear also fell short of their potential in the fiscal first quarter.