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Siemens Limited Siemens Aktiengesellschaft LETTER OF OFFER THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer is sent to you as a shareholder(s) / beneficial owner(s) of Siemens Limited. If you require any clarifications about the action to be taken, you may consult your stock broker or investment consultant or the Manager to the Offer / Registrar to the Offer. In case you have recently sold your shares in Siemens Limited, please hand over this Letter of Offer and the accompanying Form of Acceptance-cum-Acknowledgement, Form of Withdrawal and Transfer Deed (in case of physical form) to the member of the stock exchange through whom the said sale was effected. CASH OFFER AT Rs. 930/- (Rupees Nine Hundred and Thirty only) PER FULLY PAID-UP EQUITY SHARE (“Offer Price”) Pursuant to The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and subsequent amendments thereof (the “SEBI (SAST) Regulations”) TO ACQUIRE 66,829,060 fully paid-up equity shares of face value Rs. 2/- each (“Offer”) representing 19.82% of the issued, subscribed and fully paid-up equity share capital (“Offer Size”) OF Siemens Limited Registered Office: 130, Pandurang Budhkar Marg, Worli, Mumbai - 400 018 Tel: +91-22-2498 7000, Fax: +91-22-2498 7500 (the “Target Company”) BY Siemens Aktiengesellschaft Registered Office: Wittelsbacherplatz 2, 80333 Munich, Germany Tel: +49 (0) 89 636-00, Fax:+ +49 (0) 89 636-34-242 (the “Acquirer” or “Siemens AG”) Note: 1. The Offer is being made pursuant to and in accordance with the provisions of Regulation 11(2A) of the SEBI (SAST) Regulations and subsequent amendments thereto. 2. The Offer is subject to the approval from the Reserve Bank of India (“RBI”) under the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder (“FEMA”) for acquiring Equity Shares validly tendered under the Offer. On February 4, 2011, the Acquirer has filed an application with the RBI seeking its approval for acquisition of Equity Shares in the Offer from the public shareholders of Siemens Limited including non-resident Indians (“NRIs”) and erstwhile overseas corporate bodies (“OCBs”), as required, under the FEMA. No other approvals are required for the Acquirer to acquire Equity Shares tendered pursuant to this Offer. If any other statutory approvals become applicable prior to completion of the Offer, the Offer would also be subject to such other statutory approvals. 3. The procedure for acceptance of this Offer is set out in this Letter of Offer. A Form of Acceptance-cum-Acknowledgement and transfer deed (where applicable) along with a Form of Withdrawal are enclosed with this Letter of Offer. 4. Should the Acquirer decide to revise the Offer Price and / or Offer Size upward, such upward revision will be made in terms of Regulation 26 of the SEBI (SAST) Regulations no later than March 31, 2011. If there is any upward revision in the Offer Price and / or Offer Size, the same would be notified by way of a public announcement in the same newspapers in which the public announcement relating to the Offer dated January 31, 2011 was made by the Acquirer (“Public Announcement” or “PA”). Such revised Offer Price would be payable to all shareholders who have accepted this Offer and tendered their Equity Shares at any time during the term of the Offer to the extent to which their acceptance and tenders have been found valid and accepted by the Acquirer. 5. The Acquirer may withdraw the Offer in accordance with the conditions specified in Regulation 27 of the SEBI (SAST) Regulations. In the event of such withdrawal, the same would be notified by way of a public announcement in the same newspapers in which the PA appeared. 6. Shareholders who have accepted the Offer by tendering the requisite documents in accordance with the procedures set forth in the PA and this Letter of Offer can withdraw the same up to 3 working days prior to the date of closure of the Offer viz. April 7, 2011. 7. A copy of the PA and the Letter of Offer (including the Form of Acceptance-cum-Acknowledgement and the Form of Withdrawal) will be available on the Securities and Exchange Board of India’s (the “SEBI”) website at www.sebi.gov.in from the Offer opening date viz. March 25, 2011. The Form of Acceptance-cum-Acknowledgement may be downloaded and used to accept the Offer only in jurisdictions where legally permissible. Persons outside India accessing these pages are required to inform themselves of and observe any relevant restrictions. 8. This document has not been filed, registered or approved in any jurisdiction outside India. Recipients of this document resident in jurisdictions outside India should inform themselves of and observe any applicable legal requirements. 9. If there is a competitive bid, the public offers under all the subsisting bids shall close on the same date. As the Offer Price cannot be revised during the 7 working days prior to the closing date of the offers / bids, it would, therefore, be in the interest of shareholders to wait until the commencement of that period to know the final Offer Price of each bid and tender their acceptance accordingly. 10. This Offer is not conditional upon any minimum level of acceptance. 11. This Offer is not a competitive bid. There has been no competitive bid. 12. All future correspondence, if any, should be addressed to the Registrar to the Offer shown below. Manager to the Offer Registrar to the Offer HSBC Securities and Capital Markets (India) Private Limited Karvy Computershare Private Limited 52 / 60 M.G.Road, Fort Plot No 17-24, Vithalrao Nagar, Madhapur Mumbai 400 001 Hyderabad 500 081 Telephone: +91-22-2268 1533 / 1264 Telephone: +91- 40- 4465 5000 / 2342 0815-23 Facsimile: +91-22-2263 1984 Facsimile: +91- 40-2343 1551 Contact Person: Mr. Jai Bhatia / Ms. Sonam Jalan Contact Person: Mr. M. Murali Krishna / Mr. Williams Email: [email protected] Email: [email protected] OFFER OPENS ON : March 25, 2011 OFFER CLOSES ON : April 13, 2011 (For schedule of major activities relating to the Offer, please refer to the next page) SCHEDULE OF MAJOR ACTIVITIES RELATING TO THE OFFER Activity Schedule Public Announcement date January 31, 2011 (Monday) Specified Date (for the purpose of determining the February 18, 2011 (Friday) names of shareholders to whom the Letter of Offer would be sent) Last date for a competitive bid February 21, 2011 (Monday) Date by which individual Letters of Offer will be March 18, 2011 (Friday) dispatched to the shareholders Offer Opening Date March 25, 2011 (Friday) Last date for revising the Offer Price / Offer Size March 31, 2011 (Thursday) Last date for withdrawal by shareholders April 7, 2011 (Thursday) Offer Closing Date April 13, 2011 (Wednesday) Date by which acceptance / rejection would be April 27, 2011 (Wednesday) notified and the corresponding payment for the acquired Equity Shares and / or the share certificates for the rejected / withdrawn Equity Shares will be dispatched and / or credited to the beneficiary account in case of dematerialized Equity Shares All public shareholders (registered or unregistered) of Equity Shares of the Target Company, except the Acquirer, are eligible to participate in the Offer anytime before Offer Closing Date. 2 RISK FACTORS Risks related to the Offer 1) The Offer is subject to the terms and conditions set out in this Letter of Offer and receipt of the approval of the RBI for the acquisition by the Acquirer of Equity Shares held by the public shareholders of the Target Company including NRIs and erstwhile OCBs. If the RBI refuses the aforesaid approval, then the Acquirer will not acquire the Equity Shares tendered in the Offer and the Offer shall be withdrawn in accordance with Regulation 27 of the SEBI (SAST) Regulations. To the best of the knowledge of the Acquirer, no other approvals are required for the Acquirer to acquire Equity Shares tendered pursuant to this Offer. If any other statutory approvals become applicable prior to completion of the Offer, the Offer would also be subject to such other statutory approvals. In the event of (a) statutory approvals not being received in a timely manner, or (b) litigation leading to a stay on the Offer, or (c) SEBI instructing that the Offer should not proceed, the Offer process may be delayed beyond the schedule indicated in this Letter of Offer. In the event of a delay in the schedule of activities, the payment of consideration to the shareholders whose Equity Shares have been accepted in the Offer as well as the return of the Equity Shares not accepted by the Acquirer may be delayed. In case of delay due to non-receipt of statutory approvals, as per Regulation 22(12) of the SEBI (SAST) Regulations, SEBI may, if satisfied that the non-receipt of approvals was not due to the willful default or negligence on the part of the Acquirer, grant an extension for the purpose of the completion of the Offer subject to the Acquirer agreeing to pay interest as may be specified by SEBI. 2) Shareholders should note that after the last date for withdrawal of acceptances under the Offer, viz April 7, 2011, shareholders who have tendered their shares in the Offer will not be able to withdraw them even if the acceptance of Equity Shares under the Offer and dispatch of consideration gets delayed. The tendered Equity Shares and documents will be held in trust by the Registrar to the Offer, till such time as the process of acceptance of tenders and the payment of consideration is completed. 3) The Registrar to the Offer will hold in trust the Equity Shares held in physical form and in credit of the depository escrow account on behalf of the shareholders of the Target Company who have accepted the Offer till the completion of the Offer formalities, and the shareholders will not be able to trade such Equity Shares.
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