Germany's principal shipyard, TKMS, Breaks Free from Dependency
In a significant move, Thyssenkrupp's marine division, TKMS, is set to become an independent entity and go public. This spin-off is part of a larger corporate restructuring plan at Thyssenkrupp, aimed at providing greater entrepreneurial freedom for TKMS.
The planned governance structure for the newly independent TKMS AG & Co. KGaA centres around a Supervisory Board with 10 members, including 4 independent representatives. Thyssenkrupp AG will retain a majority stake of 51% via a holding company, while 49% of shares will be distributed to Thyssenkrupp shareholders, making them direct stakeholders in TKMS.
The exact members of the Supervisory Board have not been finalized yet. However, it is expected that Thyssenkrupp AG's largest single shareholder, the Krupp Foundation (holding 21% of Thyssenkrupp shares), will have a seat on the Supervisory Board of TKMS. This structure intends to combine entrepreneurial freedom for TKMS with strategic stability from Thyssenkrupp’s majority holding.
TKMS, the world leader in conventionally powered submarines, has received orders for submarines from Germany, Norway, Israel, and Singapore, and is also constructing the new German research ship 'Polarstern 2' with an order volume of around 1.2 billion euros. The company employs around 8,300 people and has shipyard locations in Kiel, Wismar, Itajaí, Brazil, as well as further sites in Hamburg, Bremen, and Emden.
The independence of the marine division is not the only change. The federal government has also planned a security agreement with TKMS, granting special information and consultation rights for sensitive activities. The security agreement is scheduled to be concluded by the end of September.
The general meeting of shareholders has expressed predominantly positive opinions about the spin-off of TKMS. However, Hendrik Schmidt from DWS criticized the planned governance structure with a supervisory board predominantly filled by the parent company, calling for the supervisory body to be predominantly independently staffed.
The acquisition of shares by the Federal Republic of Germany is not part of the current agreement, but Thyssenkrupp is open to further dialogue if there is interest. TKMS AG & Co. KGaA is expected to be entered into the commercial register by mid-October, with an IPO to follow immediately.
[1] Thyssenkrupp AG [2] TKMS [3] Krupp Foundation [4] Reuters
- Despite the concerns raised by Hendrik Schmidt from DWS about the planned governance structure of TKMS, whose Supervisory Board is expected to have a majority of members from Thyssenkrupp AG and the Krupp Foundation, it is expected that the company, a leader in marine technology, will go public by the end of October.
- With the spin-off of TKMS, Thyssenkrupp's marine division, expected to increase its presence in the global finance market with an initial public offering (IPO), aims to maintain a balance between obtaining entrepreneurial freedom and strategic stability through Thyssenkrupp AG's majority stake and the Krupp Foundation's representation on the Supervisory Board.
