TKMS, Germany's leading shipyard, achieves autonomy.
TKMS Prepares for Independence and IPO with Balanced Supervisory Board
German naval vessel shipbuilder TKMS is set to become independent and go public, following a corporate restructuring at Thyssenkrupp. The spin-off of the TKMS division from Thyssenkrupp has been approved by shareholders.
The composition of the TKMS supervisory board is yet to be decided, but it will balance majority ownership by Thyssenkrupp with a significant minority and independent presence. The board will be chaired by Professor Siegfried Russwurm.
Thyssenkrupp, retaining a 51% majority stake, is expected to appoint 6 out of the 10 supervisory board members, thereby maintaining significant influence over the company. The Krupp Foundation, Thyssenkrupp's largest single shareholder with a 21% stake, is expected to have a seat on the supervisory board.
Independent members were emphasized as necessary to protect minority shareholders’ interests. However, some financial experts have criticized the dominance of Thyssenkrupp-appointed members as limiting full independence.
Marc Tüngler of the German Shareholders' Association believes a clear focus on business can lead to better corporate management and decisions. Hendrik Schmidt, on the other hand, criticizes the planned management structure with a supervisory board predominantly filled by the parent company.
TKMS, the world leader in conventionally powered submarines and builder of frigates and corvettes, employs around 8,300 people and has shipyard locations in Kiel, Wismar, and Itajaí, Brazil.
In addition to the TKMS marine division, Thyssenkrupp plans to set up the other four divisions independently and open them up for third-party participation.
Recently, TKMS has received orders from Germany, Norway, Israel, and Singapore. The independence of the TKMS marine division is part of a planned corporate restructuring at Thyssenkrupp for the coming years.
A security agreement between TKMS and the federal government is planned to be completed by the end of September at the latest. This agreement will give the federal government special information and consultation rights for sensitive activities.
Oliver Burkhard is the CEO of TKMS. The company has an order backlog of over €18 billion and is expected to be registered as TKMS AG & Co. KGaA by mid-October. TKMS has been awarded the contract to build the new German research ship "Polarstern 2" for extreme climate and weather conditions with a contract volume of around €1.2 billion.
The shareholders expressed predominantly positive sentiments about the spin-off of TKMS. Schmidt, however, calls for the supervisory body to be predominantly independently staffed to protect the interests of minority shareholders.
With its balanced supervisory board and strategic focus, TKMS is preparing for its expected IPO and independent market listing in 2025.
Supervisory Board Composition
| Supervisory Board Composition | Number of Members | |------------------------------------|-------------------| | Total members | 10 | | Members appointed by Thyssenkrupp | 6 | | Independent members | 4 | | Krupp Foundation representation | Expected (1 seat) |
The TKMS supervisory board, composed of 10 members, will have a balance between Thyssenkrupp-appointed members, who make up 6 out of the 10, and independent members, who comprise the remaining 4. The Krupp Foundation, as Thyssenkrupp's largest single shareholder, is also expected to have a seat on the supervisory board. To protect the interests of minority shareholders, it's been suggested that the supervisory board should have a majority of independent members.
