Reuters
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KIEL, Germany (Reuters) -Thyssenkrupp plans to spin off 49% of its defence division TKMS to shareholders as part of a listing later in the year, a board member of the German conglomerate said on Wednesday.
The comments were made at a press event in Kiel, Germany, where Thyssenkrupp revealed the new branding for the division. TKMS has benefited from strong demand for military equipment that has helped boost its order book to a record 18 billion euros ($20.5 billion).
Volkmar Dinstuhl, in charge of M&A and Thyssenkrupp's automotive division, said the conglomerate's shareholders "will hold a 49% stake as part of the spin-off", disclosing for the first time the size of the stake to be floated.
Thyssenkrupp has so far only said it would keep a majority of TKMS, which makes frigates, submarines as well as sensor and mine-hunting technology, as part of the divestment which is planned to take place in 2025.
The move continues Thyssenkrupp's strategy to sell stakes in its main business lines and turn into a holding company. Last year, the German firm sold a 20% stake in its steel division after listing its hydrogen business Thyssenkrupp Nucera in 2023.
($1 = 0.8797 euros)
(Reporting by Fabian Bimmer and Christoph Steitz. Editing by Jane Merriman)
