Germany's principal shipyard, TKMS, secures autonomy
TKMS AG & Co. KGaA Spin-off: Thyssenkrupp Maintains Majority Influence on Supervisory Board
In a significant corporate restructuring move, Thyssenkrupp AG is spinning off its naval shipbuilding division, TKMS AG & Co. KGaA, and taking it public. Despite the independence of TKMS, the supervisory board structure ensures Thyssenkrupp's majority influence through control of board appointments combined with minority independent representatives.
TKMS, the world leader in conventionally powered submarines and shipbuilder for naval vessels, will retain a 51% majority stake, with the remaining 49% distributed to Thyssenkrupp shareholders in the spin-off. The new supervisory board, planned to have 10 members, will include 4 independent representatives and 6 members appointed by Thyssenkrupp.
The Krupp Foundation, Thyssenkrupp's largest single shareholder with approximately a 21% stake, is also expected to have a seat on the TKMS supervisory board. The federal government will have approval and pre-emption rights, and the right to propose a member for the TKMS supervisory board.
The supervisory board chairman, Volkmar Dinstuhl, stated that ThyssenKrupp AG is open to further discussions if there is interest from the federal government. A security agreement is planned between TKMS and the federal government for special information and consultation rights for sensitive activities.
TKMS, which employs around 8,300 people and has shipyard locations in Kiel, Wismar, Itajaí, Brazil, and other sites in Hamburg, Bremen, and Emden, has full order books and numerous submarine orders from Germany, Norway, Israel, and Singapore. The order backlog of TKMS has grown by more than 50% since the end of September to over 18 billion euros.
Shareholders generally expressed positive sentiments about the spin-off, citing better corporate management and increased attractiveness for investors. TKMS is expected to be entered into the commercial register by mid-October, with an IPO to follow immediately. Oliver Burkhard is the CEO of TKMS.
The spin-off of TKMS has been approved by shareholders, and TKMS has been awarded the construction of the new German research ship 'Polarstern 2' with an order volume of around 1.2 billion euros. However, criticism was raised about the planned management structure, with six out of ten members of the TKMS supervisory board being determined by Thyssenkrupp.
As TKMS prepares for its public debut, it remains to be seen how the balance of power on the supervisory board will evolve and how it will impact the future direction of the company. The security agreement and potential federal government entry are still matters of discussion and are not yet part of the current agreement.
- TKMS, as it embarks on its public journey, will maintain a significant influence in its industry and finance, with a 51% majority stake and control of a majority on the supervisory board.
- The spin-off of TKMS, with its strong presence in both aerospace (naval vessels) and finance, may lead to discussions about the balance of power on the supervisory board, considering the majority representation from Thyssenkrupp.
