KNDS family owners to sell 40% stake to German government, source says
KNDS Stake Sale and Upcoming IPO
By Alexander Hübner
Background and Deal Details
MUNICH, June 21 (Reuters) - The families that own half of tank maker KNDS have agreed to sell a 40% stake to the German government, according to a source familiar with the matter, in a deal that clears the final hurdle for the company to list on the stock exchange before the summer.
KNDS, which builds the "Leopard 2" and "Leclerc" tanks, is preparing an IPO for a dual-listing in Frankfurt and Paris in a move that would see the families exit from the Franco-German company.
Valuation and Financial Terms
The deal will value KNDS between €15 billion and €18 billion, depending on how the share price develops after the listing, the source said. That means the German government would pay some €6 billion to €7 billion for its holding.
Bloomberg first reported the stake sale.
Official Responses
KNDS did not immediately respond to a request for comment. A spokesperson for the families and the German economy ministry, which is leading the talks on behalf of the government, declined to comment.
IPO Process and Timeline
Deal Paves Way for July IPO
KNDS plans to float before the summer, with the exact timing depending on the stake sale to the German government.
IPO Announcement and Ownership Structure
An official announcement of the IPO plan, known as the intention to float, is expected by Wednesday, the source added.
KNDS is currently joint-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.
The families aim to divest their entire 50% stake with the help of the IPO.
The German government wants to balance ownership of KNDS with the French government, which holds the other half.
During the IPO, 10% of the remaining shares held by the families and 10% of those held by France are to be sold.
IPO Deadline
The latest date for the IPO is July 13, the day before France's national Bastille Day celebrations, which mark the start of the summer break for the French capital markets.
Additional Information
($1 = 0.8720 euros)
(Reporting by Alexander Huebner in Munich, Christian Kraemer and Christoph Steitz in Berlin; Additional reporting by Ananya Palyekar in Bengaluru; Writing by Rachel More; Editing by Alexandra Hudson and Edmund Klamann)
