Germany to Acquire 40% Stake in KNDS at IPO, Matching France's Share
Germany and France Reach Agreement on KNDS Stake Distribution
Germany's Planned Acquisition at IPO
BERLIN, May 20 (Reuters) - Germany will look to acquire a 40% stake in Franco-German defence equipment group KNDS when it lists on the stock market, a German official said on Wednesday, matching the size of France's stake in the maker of the Leopard tank.
Future Stake Reductions and Voting Rights
Both governments would be expected to reduce their stakes to 30% over the next two to three years but both would hold equal voting rights regardless of the size of each stake, the official, who spoke on condition of anonymity, said.
Resolution of Negotiations
An agreement on the size of the stakes held by the two governments would resolve weeks of negotiations over the group, which is jointly owned by the French government and the German family owners of the former Krauss-Maffei Wegmann (KMW). KMW was merged with France's Nexter into KNDS.
Strategic Importance for Germany
Berlin, which has been investing billions in rebuilding its military after decades of underinvestment, has been keen to ensure equal sway over the company with France to safeguard national security interests.
Role of German Ministries
Germany's economy ministry will manage the government's side of the transaction in coordination with the defence ministry, the German official said.
Reporting Credits
(Reporting by Markus Wacket; writing by James Mackenzie; Editing by Cynthia Osterman)
