Siemens AG has delayed the initial public offering(IPO)of its Osram lighting unit following the slump in global stock markets.
A statement on the German company's website said it was'firmly holding'to its plans to list the lighting subsidiary but this would now take place at a'later date'.The company did not specify when this date would be but said it would be depend on the"stabilisation of market conditions".
Volatility on the stock markets has caused Siemens to delay the listing
Siemens AG,which is Germany's biggest company by market capitalisation,had planned to list Osram in the autumn of 2011 as part of a plan to narrow its portfolio.The move would allow Osram to better capture growth independently,the company said,although the parent company would keep a minority stake in the lighting arm.
The IPO is not the first to be delayed by volatility in the financial markets and Siemens held firm to the promise to hive off Osram in the remainder of the statement:
"The preparations are on track and will be continued.The parent company remains committed to retaining a minority stake in Osram AG as an anchor shareholder over the long term,"it read.
Osram,which employs roughly 39,000 people globally,has been part of Siemens's product portfolio for almost a century.The unit generated sales of 4.68 billion euros($6.42 billion)last year and operating profit of 569 million euros.A recent study by Metzler Equity Research estimated Osram has a market value of about 3.2 billion euros,
A report by Bloomberg Businessweek,however,suggested higher raw-material costs and increased competition from companies in Asia were potential reasons for the delay of the IPO.
See more here:Siemens delays Osram IPO
