A France ea Germany agreed to become shareholders, in equal shares, of the tank manufacturer KNDS.
This Monday (22), the two governments released the information, paving the way for what is expected to be one of the biggest IPOs of companies in the defense sector in Europe.
The agreement is subject to budget approval from the Parliament German for the planned acquisition of a stake in 40% in the company of the German family owners who currently own half of KNDS.
France holds the other half.
The agreement establishes long-term commitments between shareholders, rights equal of governance e supervision of questions of securityahead of the planned dual listing of KNDS in Frankfurt and Paris next month.
“This agreement reflects the shared determination of France and Germany to strengthen Europe’s industrial and defense capabilities, support its armed forces and strengthen European sovereignty in the long term,” the governments said in a joint statement.
Germany’s budget committee is expected to formally decide on Wednesday on the planned acquisition of the stake in KNDS, according to a report from the German Defense Ministry, which said the decision was necessary to ensure the company can go public in July.
The intention to take KNDS public was planned in June, the report said.
Germany’s purchase of the stake will leave KNDS with a valuation of between 15 billion and 18 billion euros ($17.2 billion to $20.6 billion), a source familiar with the matter told Reuters on Sunday, in a deal aimed at creating a counterweight to France.
Germany also seeks to obtain the call “golden action” in the German unit of the KNDS, according to the document, which would give it expanded influence over personnel and strategic issues at the national level and guarantee a balance of power between Paris and Berlin.
KNDS’ planned IPO marks one of the largest and most prestigious listings in the world. and comes after a recent setback in Franco-German relations, following the failure of the joint FCAS new generation fighter project.
KNDS was created through the merger of the former KMW (Krauss-Maffei Wegmann) with the French Nexter.
