Thyssenkrupp’s In­dus­tri­als stake may pave way for MA

Viet Nam News - - MARKETS -

Un­der Ger­man takeover law, 30 per cent marks the thresh­old at which po­ten­tial buy­ers have to launch a full takeover of­fer.

DUIS­BURG, Ger­many/ FRANK­FURT — Thyssenkrupp will keep a stake of around 30 per cent in the cap­i­tal goods busi­ness it plans to spin off, a labour rep­re­sen­ta­tive at the Ger­man con­glom­er­ate said, paving the way for an even­tual takeover bid once it de­cides to sell out.

Un­der the plan, Thyssenkrupp share­hold­ers will own a ma­jor­ity of Thyssenkrupp In­dus­tri­als, which will in­clude the el­e­va­tors, car parts and plant en­gi­neer­ing units, while Thyssenkrupp will be re­named Thyssenkrupp Ma­te­ri­als and keep a mi­nor­ity stake.

This was likely to be “around 30 per cent”, Tekin Nasikkol, head of the works coun­cil at Thyssenkrupp Steel Europe and a mem­ber of Thyssenkrupp’s su­per­vi­sory board, told re­porters.

Thyssenkrupp will keep only its ma­te­ri­als and steel­re­lated ac­tiv­i­ties un­der the plan an­nounced last week and said it in­tends to sell the Thyssenkrupp In­dus­tri­als stake in a timely man­ner once the deal gets rub­ber­stamped by share­hold­ers, which is ex­pected to be in the next 12 to 18 months.

“We could then sell down ei­ther com­pletely or step by step,” Nasikkol added on Thurs­day.

Should Thyssenkrupp Ma­te­ri­als de­cide to sell the stake in Thyssenkrupp In­dus­tri­als to one party it could be an op­por­tu­nity for Fin­nish el­e­va­tor group Kone, which has long been want­ing to do a deal.

Kone was not im­me­di­ately avail­able for com­ment.

Un­der Ger­man takeover law, 30 per cent marks the thresh­old at which po­ten­tial buy­ers have to launch a full takeover of­fer.

That was the case when Fin­nish power group For­tum bought 47 per cent of Uniper from E.ON, which kept the stake after a sim­i­lar spin off.

Chief Ex­ec­u­tive Guido Kerkhoff said last week that Thyssenkrupp had thor­oughly re­viewed al­ter­na­tives to the split, in­clud­ing a par­tial list­ing or merger of its el­e­va­tor unit.

Kerkhoff said that a merger of the busi­ness would have pre­vented ac­cess to its cash flow, say­ing this would be “an am­pu­ta­tion of healthy parts that leave the re­main­ing group in a weaker po­si­tion”. — REUTERS

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