Expands Self-Reliance: Germany's Leading Shipyard TKMS Breaks Away from Dependencies
Thyssenkrupp Marine Systems Goes Public: Balancing Control and Independence
Thyssenkrupp Marine Systems (TKMS) is about to embark on a new journey as it spins off from its parent company and prepares for an Initial Public Offering (IPO). The marine division, a world leader in conventionally powered submarines and the construction of frigates and corvettes, is set to become TKMS AG & Co. KGaA.
The new company will be governed by a 10-member supervisory board, with 4 independent representatives. Currently, 6 out of these 10 seats are planned to be appointed by Thyssenkrupp AG, the majority shareholder holding 51% of TKMS after the spin-off. This structure aims to balance parent company control with minority shareholder protection through independent members.
Minority shareholders, who will hold 49% of TKMS shares, are calling for more independent members on the board to protect their interests more effectively. The Krupp Foundation, Thyssenkrupp’s largest single shareholder with a 21% stake, is expected to have a seat on the supervisory board, reflecting major shareholder influence beyond just Thyssenkrupp AG.
Regarding federal government or state involvement, there is currently no plan for the Federal Republic of Germany to acquire a stake in TKMS. However, Thyssenkrupp remains open to further dialogue if there is interest from the government. The federal government is planning a security agreement with TKMS, granting them special information and consultation rights for sensitive activities.
TKMS has secured a significant contract with the award of the construction of the new German research ship "Polarstern 2" for extreme climate and weather conditions, with a contract volume of around 1.2 billion euros. The company has also recently received orders for submarines from Germany, Norway, Israel, and Singapore.
The IPO will allow TKMS to drive investments in new technologies and markets independently. With an order backlog standing at over 18 billion euros, having grown by more than 50% since the end of September, TKMS is well-positioned for its new chapter.
References: 1. Handelsblatt 2. Reuters 3. Bloomberg
- The new TKMS shareholders expect more independent members on the supervisory board to better safeguard their interests, potentially representing a shift in the existing balance of control between Thyssenkrupp AG and the minority shareholders.
- In the aerospace and defense industry, where finance plays a crucial role in shaping business strategies, the independent finances of TKMS, post IPO, are anticipated to open up opportunities for further investments in cutting-edge technologies and diverse markets.
