The German conglomerate Thyssenkrupp ((ETR:TKA) is planning to split the company into two listed companies. The aim of the transaction is to enable better focus on development of industrial goods and materials business.
According to the company information, at an extraordinary meeting on Sunday, September 30, 2018, the Executive Board of Thyssenkrupp AG proposed to the Supervisory Board that the Group will be split into two much more focused and efficient companies.
– The capital goods and materials businesses shall be managed in future as independent, listed companies with direct access to the capital markets. The Management Board is convinced that this new structure will allow the businesses to develop better and concentrate on their strengths. Both companies will continue to use the name thyssenkrupp, the company says.
– We are now proposing a solution that not only creates value for our shareholders, but also significantly improves the development prospects of our businesses”, says Guido Kerkhoff, the Chairman of the Management Board.
The separation into two companies will take the form of a spin-off. After the split, Thyssenkrupp AG shareholders will hold two shares: one of the future thyssenkrupp Materials AG (formerly thyssenkrupp AG) and one of the new thyssenkrupp Industrials AG.
Thyssenkrupp Industrials will consist of three units: firstly the elevator business, secondly the automotive supplier business and thirdly core plant construction.
The other part – Thyssenkrupp Materials – will consist of the following units: Materials Services, the 50 percent interest in the future steel joint venture, the slewing bearings and forging businesses as well as the marine business.
Based on pro forma figures for fiscal 2016/17, Thyssenkrupp Industrials AG would generate sales of around 16 billion euros with around 90,000 employees. Thyssenkrupp Materials AG would have sales of around 18 billion euros with just under 40,000 employees.
The separation must then be decided by the Annual Stockholders’ Meeting of Thyssenkrupp AG. This could take place in 12 to 18 months, the company says.
The Group´s annual net sales were 42,9 billion euros with the net loss of 591 million euros. The earnings per share were 1,15 negative, but dividend was 0,15 euros.