Dateline: LONDON, December 9, 2024 – Ananym Capital has built a stake in Siemens Energy and launched an activist campaign pushing for a wind business spinoff that could boost shares 40 percent1.
The campaign targets value creation at the German energy equipment supplier, where the activist firm believes separating the struggling wind division would unlock significant shareholder returns.
Key Takeaways
- Ananym pushes Siemens Energy to spin off wind business
- Activist estimates potential 40% share price upside from divestment
- Campaign led by Engine No. 1 Exxon veteran
Market reaction & context
Siemens Energy shares have struggled amid challenges in its wind turbine operations, particularly quality issues that have weighed on profitability2. The German industrial conglomerate spun off the energy division from Siemens AG in 2020, but the unit has faced headwinds from operational difficulties in its wind business.
Ananym Capital, the activist firm behind the successful Engine No. 1 campaign that shook up Exxon Mobil’s board in 2021, has not disclosed the size of its Siemens Energy stake3. The firm is known for targeting energy companies and pushing for strategic changes to enhance shareholder value.
Detailed analysis
According to Ananym’s analysis, a divestment or spinoff of the wind business could raise Siemens Energy’s share price by around 40 percent as it would allow the group to focus on its core operations4. The activist firm argues that separating the wind unit would eliminate drag from the struggling division while creating two more focused entities.
Siemens Energy’s wind business has been a source of significant challenges, including quality control issues with turbine components that have resulted in warranty provisions and operational disruptions. The division’s problems have overshadowed performance in other areas of the energy portfolio.
Activist track record
Ananym Capital gained prominence through its Engine No. 1 vehicle, which successfully challenged Exxon Mobil management and secured three board seats in 2021 despite holding just 0.02 percent of the oil giant’s shares5. That campaign focused on pushing Exxon toward cleaner energy investments and improved capital allocation.
The firm’s approach typically involves building focused stakes in underperforming companies and advocating for strategic changes to unlock value. Its latest target represents a shift toward European industrial companies facing operational challenges in the energy transition.
Outlook
The activist campaign comes as Siemens Energy works to address operational issues across its wind business while maintaining its position in the broader energy infrastructure market. The company has been implementing turnaround measures for the wind division, but progress has been slower than expected.
Industry analysts have noted that separating troubled divisions can sometimes create value for both the parent company and the spun-off entity by allowing each to pursue more targeted strategies. However, the timing and structure of any potential spinoff would be critical to maximizing shareholder returns.
Not investment advice. For informational purposes only.
References
1“Activist behind Engine No. 1 Exxon campaign builds stake in Siemens Energy”. Financial Times. Retrieved December 9, 2024.
2“Ananym Capital takes stake in Siemens Energy, asks for wind spin off”. Reuters. Retrieved December 9, 2024.
3“Activist investor targets Siemens over wind unit”. reNews. Retrieved December 9, 2024.
4“Ananym Capital builds stake in Siemens Energy, launches activist campaign”. TradingView. Retrieved December 9, 2024.
5“Ananym Capital builds stake in Siemens Energy, launches activist campaign”. MarketScreener. Retrieved December 9, 2024.