Thyssenkrupp approves spin-off of naval unit TKMS

A general view of the logo of the engineering company Thyssenkrupp on December 22, 2022, in North Rhine-Westphalia, Duisburg | File Photo: Roland Weihrauch/dpa

Essen, Germany (dpa) – Germany’s largest naval shipbuilder, Thyssenkrupp Marine Systems (TKMS), is set to become an independent company after Thyssenkrupp shareholders approved a spin-off at a general meeting on Friday.

Thyssenkrupp is to retain a majority stake of 51% in TKMS through a new holding company. The remaining 49% of TKMS shares are to be transferred to Thyssenkrupp shareholders in proportion to their shareholdings, making them direct shareholders of TKMS.

According to its own information, TKMS is the world market leader for non-nuclear submarines, which it builds alongside frigates and corvettes.

Thyssenkrupp chief executive Miguel López said the spin-off is intended to give the division greater entrepreneurial freedom to grow.

He expects the new company to be entered into the commercial register in mid-October. Its listing on the regulated market of the Frankfurt Stock Exchange is to follow immediately afterwards.

The company, headquartered in the northern city of Kiel, employs around 8,200 people.

In February, dpa reported Thyssenkrupp was pressing ahead with plans to spin off its naval shipbuilding division, Thyssenkrupp Marine Systems (TKMS), with an initial public offering (IPO) planned this year.

With the order books of the naval defence division full, Thyssenkrupp chief executive Miguel López said in a podcast interview with the Westdeutsche Allgemeine newspaper at the time, “We want to issue marine shares that our shareholders can book directly into their securities accounts. It is clear that Thyssenkrupp will retain the majority, meaning at least 51%,” adding, “”An IPO is not only an important step for us, but also strategically relevant for the Federal Republic of Germany with a view to possible cooperation in the European defence sector”