Frankfurt (Germany) (AFP) – KNDS said Friday that it planned to push ahead with plans for a public offering of its shares, despite reports Berlin is seeking a delay as it weighs taking a stake in the tank and weapons maker. KNDS is currently effectively controlled by the French state as it is part-owned by French public holding company GIAT Industries, with Germany’s Wegmann family owning the other part.
The company is planning an initial public offering as defense stocks are booming with Europe racing to re-arm, and the German government has been examining an investment in a bid to gain more influence over the group. But reports have said that Chancellor Friedrich Merz’s government is seeking to postpone the stock market debut, which was initially planned in the coming months, to autumn as officials bicker over the size of a potential stake.
KNDS chief executive Jean-Paul Alary insisted, however, that the group was “continuing preparations for a potential IPO in line with its initial schedule.” “The company continues to assess the earliest appropriate market window,” Alary said in a statement to AFP. The group “would naturally welcome a potential participation” of the German government, he added, but the focus “remains on preparing the IPO carefully and in the best interests of the company, its existing shareholders, employees and customers.”
KNDS is a key supplier to both the German and French militaries, making equipment including Leopard 2 battle tanks and Caesar howitzers. The group has reportedly grown frustrated that Berlin has not yet made a decision. Top officials signaled only recently to the Wegmann family that they were interested in acquiring a 30 to 40 percent stake ahead of the IPO, Der Spiegel magazine reported.
Asked about the matter this week, an economy ministry spokeswoman said only that discussions “are currently underway on this subject with the company’s owners.” KNDS was created in 2015 through a merger of France’s Nexter and Germany’s Krauss-Maffei Wegmann.
© 2024 AFP
