The long-rumored IPO of Siemens’ healthcare business, dubbed Healthineers, will likely be first half 2018. How CNBC put it was that the IPO would enable “Healthineers to have its own currency for acquisitions and investments as the global healthcare market shifts focus from Siemens’ core business of imaging to molecular diagnosis and patient self-management.” Estimated value is €40 billion (US$47 billion). This separate listing has been delayed, further depressing their share price after a weak quarter. A Siemens board member with responsibility for Healthineers, Michael Sen, said to reporters on the third quarter earnings call that he was positive on the advantages of listing on a US exchange (Reuters).
Healthineers was one of the few bright spots in Siemens’ disappointing quarterly report, with low earnings in their energy related businesses, especially a potential €100 million sales loss resulting from four gas turbines illegally getting up and walking from southern Russia to sanctioned Crimea. We also strongly recommend that Siemens use the time before the IPO to find another name to replace the silly (in English) ‘Healthineers’ (after Three Musketeers? Mountaineers? Out of a Karl May western novel?) Hat tip to Paul Costello.