CSG Bids for Stake in Franco-German Tank Maker KNDS as Families Pursue IPO
CSG's Offer and the Ongoing IPO Plans
BERLIN, May 13 (Reuters) - Czech defence group CSG has offered to buy a stake in Franco-German tank maker KNDS from its German owner families, a source familiar with the situation told Reuters on Wednesday.
Family Priorities and IPO Strategy
The families, however, are prioritising an initial public offering and a stake sale to the German government, the source added.
CSG's Approach and Market Reactions
The Financial Times earlier reported CSG's approach, which took place in recent weeks.
KNDS declined to comment. CSG had no immediate comment.
Ownership Structure and State Interests
The bid comes as the families, which hold 50% of KNDS, pursue an IPO.
On Tuesday, sources told Reuters the German state - looking to safeguard national security interests - had moved closer to buying a stake in KNDS in a pre-IPO move, after sending a letter to the families outlining interest in acquiring a 30% to 40% stake.
The French state owns the remaining 50% in KNDS.
Valuation and Market Performance
An IPO could value KNDS at around 20 billion euros ($23 billion).
CSG's IPO earlier this year valued it at 25 billion euros, but its market capitalisation has since fallen to less than 16 billion euros as defence shares have broadly declined.
Controversies and Share Price Impact
CSG has also rejected allegations by short-seller Hunterbrook Media questioning its business model and production capacity, which weighed on the shares this month.
Its shares were down 3.1% on Wednesday at 15.40 euros, well below the IPO price of 25 euros.
($1 = 0.8544 euros)
(Reporting by Alexander Huebner. Additional reporting by Jan Lopatka in Prague. Writing by Kirsti Knolle and Jason Hovet. Editing by Ludwig Burger and Mark Potter)
