Germany's prominent shipyard, TKMS, secures autonomy from any external control.
Thyssenkrupp Marine Systems (TKMS), Germany's naval vessel shipbuilder, is set to break free and join the public market. The spin-off, which has been approved by Thyssenkrupp shareholders, is part of a larger corporate restructuring plan at Thyssenkrupp, aimed at enhancing the management focus and shareholder value across all divisions.
TKMS's Growing Success and Future Plans
TKMS, the world leader in non-nuclear submarines, has recently secured an order from Singapore for two more submarines for the Indo-Pacific region. This comes as the company continues to expand, with a current order backlog of over €18 billion, marking a significant growth of more than 50% since the end of September. The company is also responsible for building the new German research ship "Polarstern 2" for extreme climate and weather conditions, with a contract volume of around €1.2 billion.
The company's independence is expected to be finalised by mid-October, with an immediate Initial Public Offering (IPO) following. Thyssenkrupp will retain 51% of the shares in TKMS, while the remaining 49% will be transferred to Thyssenkrupp shareholders.
The Supervisory Board and Shareholder Interests
The supervisory board of TKMS AG & Co. KGaA will be composed of 10 members. Six will be appointed by Thyssenkrupp AG, the parent company, one member will be nominated by the German government, and the remaining seats are likely to include representatives from major shareholders such as the Krupp Foundation, which holds a 21% stake. However, the full final composition of the board has not yet been decided.
Concerns have been raised about the planned management structure, with some arguing that the dominance of Thyssenkrupp on the board may not adequately protect the interests of minority shareholders. Hendrik Schmidt from asset manager DWS, for example, described it as a "shadow captain on the bridge." He advocates for a supervisory board primarily made up of independent members to protect minority shareholders.
In response, Professor Siegfried Russwurm, Chairman of the Supervisory Board of Thyssenkrupp AG, emphasised that the new structure will give TKMS direct access to capital markets, which could benefit all shareholders.
A Security Agreement with the Federal Government
The federal government is planning a security agreement with TKMS, granting special information and consultation rights for sensitive activities. The security agreement is expected to be concluded by the end of September.
While an acquisition of shares by the Federal Republic of Germany is not part of the current plan, ThyssenKrupp is open to further dialogue. The agreement is intended to ensure the continued success of TKMS while maintaining national security interests.
TKMS employs around 8,300 people and has shipyard locations in Kiel, Wismar, Itajaí, Brazil, Hamburg, Bremen, and Emden. The company's independence marks an exciting new chapter in its history and a promising future in the maritime industry.
TKMS's future growth in the industry may allow it to tap into the finance sector, as an immediate Initial Public Offering (IPO) is anticipated following its independence. The aerospace sector may also become relevant, given the potential for TKMS's advanced submarine technology to be utilized in underwater exploration or defense applications.
The supervisory board of TKMS, consisting of 10 members, will have representatives from major shareholders like the Krupp Foundation, but the question of whether this structure adequately protects minority shareholders' interests remains a point of contention.
