According to sources familiar with the matter, Siemens AG is considering spinning off the majority of its stake in Frankfurt-listed medical equipment subsidiary Siemens Healthineers through a relatively untested structure.

The industrial conglomerate has been discussing exit options for its 71% stake in Siemens Healthineers with potential advisors, sources said, requesting anonymity as the information is not public. Siemens AG is considering distributing the stake as a dividend to investors, according to the sources.

Siemens Healthineers has declined approximately 9.6% in Frankfurt trading this year and currently has a market value of around 52 billion euros ($61 billion). A so-called "direct spinoff" would essentially allow Siemens AG to exit the business, though such moves are rare among major German corporations. Sources indicated that this type of transaction could create potential tax burdens for investors, and Siemens AG is seeking ways to mitigate the impact.

No final decision has been made, and Siemens AG is still evaluating alternative options, sources said. Some sources revealed that Siemens AG might choose to retain a minority stake, which could be sold in the future to fund other transactions.

If Siemens AG decides to proceed with the spinoff plan, the move would still require shareholder approval and could not be implemented until next year at the earliest, sources indicated.