Berlin Secures Role in TKMS Spin-off
Berlin and Thyssenkrupp have agreed to give Germany influence over TKMS ahead of its spin-off. The government will have rights of approval and pre-emptive rights on share sales. Details are to be finalised by September end, with a shareholder meeting scheduled for August.
Berlin has reached a preliminary accord with Thyssenkrupp to secure influence over the industrial conglomerate's defense division TKMS, as documents revealed on Friday. This agreement precedes the planned spin-off and public listing set for later this year.
The German government, focused on ensuring security regarding TKMS, which manufactures frigates and submarines, concluded an initial term sheet on July 7. It includes provisions allowing Germany to approve if a 25% stake or more is sold post-spin-off.
Moreover, Thyssenkrupp, holding a 51% share in TKMS, allows Berlin pre-emptive rights for any third-party sales of 5% or more. The government will also nominate a supervisory board member. The deal combines economic independence with security policy reliability, Thyssenkrupp stated.
(With inputs from agencies.)
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