Siemens reportedly eyeing a direct spinoff of Healthineers stake

[Facade of the Siemens building in Velizy-Villacoublay, France]
HJBC/iStock Editorial via Getty Images

Siemens (OTCPK:SIEGY [https://seekingalpha.com/symbol/SIEGY]) is looking to offload a large holding in its Siemens Healthineers (OTCPK:SMMNY [https://seekingalpha.com/symbol/SMMNY]) business through a so-called direct spinoff—a rare move for a major German company—Bloomberg News reported on Friday, citing people familiar with the matter.

As part of the process, Siemens (OTCPK:SMAWF [https://seekingalpha.com/symbol/SMAWF]), which owns a little over 71% in Healthineers (OTCPK:SEMHF [https://seekingalpha.com/symbol/SEMHF]), will hand a sizable stake in the medical equipment maker to its shareholders as a dividend in kind.

The company could disclose the plans as early as next week, the people said, seeking anonymity as the information is not yet public.

Siemens (OTCPK:SMAWF [https://seekingalpha.com/symbol/SMAWF]) could cut its ownership to below 40% with the transaction, a potential move to deconsolidate the unit, they added.

Based on early talks with tax authorities, the company and its tax advisors are confident the transaction would not result in a significant tax burden for investors, some of the people said.

Next week, Siemens (OTCPK:SMAWF [https://seekingalpha.com/symbol/SMAWF]) is expected to provide information on its business strategy during its investor day on Nov. 13. Several options remain on the table, and the [https://www.bloomberg.com/news/articles/2025-11-07/siemens-is-said-to-favor-direct-spinoff-of-stake-in-healthineers] company hasn’t yet finalized a decision, according to the people.

Siemens (OTCPK:SMAWF [https://seekingalpha.com/symbol/SMAWF]), which listed Healthineers (OTCPK:SEMHF [https://seekingalpha.com/symbol/SEMHF]) in 2018, continues to hold a stake worth around €35B ($41B) in the business. The company has been reducing its ownership from time to time, including in February, when it generated €1.4B ($1.5B) through a sale of nearly 2% of its stake.

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