FRANKFURT/DUESSELDORF (Reuters) – Thyssenkrupp is working on a spin-off of its warship division after private equity firm Carlyle dropped out as a bidder last week, the group’s CFO said, flagging 2026 as a realistic time frame for when such a move could happen.

A spin-off in the coming calendar year would be ambitious in my view. My guess would be 2026, but we’ll have to see,” Jens Schulte told Reuters, adding the idea was for the government to take a stake in ThyssenKrupp Marine Systems (TKMS) as part of a deal.

Carlyle and state-lender KfW were poised to take a majority in TKMS but the U.S. investor last week pulled the plug, leaving Thyssenkrupp to pursue alternatives for TKMS, which makes submarines and frigates.

We are currently being approached by all kinds of parties, both nationally and internationally, with the question of possible partnerships or tie-ups,” Schulte said, adding the image of defence companies had improved of late.

He said that while a spin-off of TKMS remained the preferred option, Thyssenkrupp could also change plans if a more value-creating opportunity arose.

Schulte, who took over as finance chief at Thyssenkrupp in June, also raised the prospect of shareholder payouts, saying the company was in a position to offer a dividend but that it was up to the supervisory board to decide.

According to LSEG estimates, Thyssenkrupp is expected to pay a dividend of 0.16 euros per share for the 2023/24 fiscal year, up from 0.15 euros in the previous year.

Schulte, speaking ahead of full-year results scheduled for Nov. 19, said the group’s fourth-quarter had been solid, adding the group was targeting a return on sales of 4%, up from around 1.5% now.

“Thyssenkrupp is a company with a very strong substance. We have good strategic positions in many areas.

(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Sandra Maler)