Germany's premier shipyard, TKMS, achieves autonomy
Germany's naval shipbuilder, TKMS, is set to embark on a new chapter as a publicly-listed company following the approval of its spin-off from parent company Thyssenkrupp. With a workforce of around 8,200 spread across shipyard locations in Kiel, Wismar, Hamburg, Bremen, and Emden, TKMS has established itself as a global leader in non-nuclear submarines and the construction of frigates and corvettes [1].
The spin-off, which is part of a larger corporate restructuring plan at Thyssenkrupp, will see TKMS raise funds through an Initial Public Offering (IPO). TKMS CEO Miguel López anticipates the new company, TKMS AG & Co. KGaA, to be entered into the commercial register in mid-October, with the IPO to follow immediately [3].
Thyssenkrupp will retain a 51% majority stake in the new TKMS entity, ensuring it remains the strategic majority shareholder. This structure is designed to combine the benefits of TKMS’s operational independence with the stability and strategic steering provided by Thyssenkrupp [3][5].
However, the promised independence may be initially limited, with Thyssenkrupp appointing the majority of supervisory board members. Critics have called for a supervisory board composition with more independent members to safeguard the interests of minority shareholders [2]. The Krupp Foundation, Thyssenkrupp’s largest single shareholder holding about 21%, is also expected to have a presence on the supervisory board, contributing to Thyssenkrupp’s continued influence [2].
Despite this, TKMS will have direct access to the capital market and can drive investments in new technologies and markets on its own. This independence will be crucial in securing major orders, as demonstrated by recent contracts from Germany, Norway, Israel, and Singapore [4].
One such significant order is the construction of the new German research ship 'Polarstern 2', with an order volume of around €1.2 billion [2]. The federal government has also approved a security agreement with TKMS, granting them special information and consultation rights for sensitive activities [1].
The federal government will not acquire shares in TKMS, but is open to further discussions. It will also have the right to propose a member for the new TKMS supervisory board, as agreed upon in a position paper with Thyssenkrupp [1].
Oliver Burkhard, the former Thyssenkrupp HR director, is the CEO of TKMS. With a robust order backlog standing at over €18 billion, TKMS is poised for a successful future as an independent company, balancing operational independence with strategic guidance from Thyssenkrupp.
[1] - The Economist [2] - Reuters [3] - Bloomberg [4] - Naval-Technology [5] - The Wall Street Journal
- The spin-off of TKMS from Thyssenkrupp will open new opportunities for fundraising in the financial industry, as TKMS aims to conduct an Initial Public Offering (IPO) to strengthen its position in the industry.
- As an independent entity, TKMS will have the freedom to invest in new technologies and markets, which will be crucial in securing major orders from various countries such as Germany, Norway, Israel, and Singapore, thereby expanding its business footprint.
