Siemens consolidates telecom operations

German MNC Siemens on Tuesday announced consolidation of its telecom operations in India by buying out 100 per cent equity stake in its telecom company, Siemens Public Communication Networks Pvt Ltd, for a consideration of Rs 195 crore (Rs 1.95 billion).

The company has also decided to purchase 51 per cent stake in its Bangalore-based shared services arm Siemens Shared Services Pvt Ltd from Siemens Shared Services LLC, USA/Siemens AG for Rs 11.1 crore (Rs 111 million).

"Both these transactions are subject to all applicable statutory and regulatory approvals," Siemens said in a statement in New Delhi.

Siemens Information Systems, a wholly owned subsidiary of Siemens Ltd, holds the remaining 49 per cent stake in the shared services. These decisions were taken at a specially convened meeting of its board of directors.

Commenting on the decision to acquire SPCNL, Juergen Schubert, managing director of Siemens, said "The telecom is growing at a healthy rate and our telecom network infrastructure company, SPCNL, has today emerged as one of the leading players in its area of operation.

"With this acquisition, the telecommunication business of Siemens in India -- now known as Siemens Com, comprising basically of Enterprise Networks and Public Communication Networks, are consolidated," he added.