ZCZC
BCN-09
GERMANY-MANUFACTURING-STEEL-RESTRUCTURING
Thyssenkrupp chiefs give green light for breakup
FRANKFURT AM MAIN, Oct 1, 2018 (BSS/AFP) – German industrial conglomerate
Thyssenkrupp should be split into two separate firms, the group’s supervisory
board agreed Sunday, meaning only the shareholders’ go-ahead is needed to
break up the economic giant.
With a unanimous vote in favour, Thyssenkrupp “is taking a courageous step
forward” with “a convincing plan,” newly elected non-executive chairman
Bernhard Pellens said in a statement.
Essen-based Thyssenkrupp has been in turmoil since the summer, when its
chief executive and supervisory board chairman both quit in quick succession.
“We can now finally give our employees a clear orientation for the future
of the company,” said Guido Kerkhoff, who was confirmed as chief executive
after filling the role on an interim basis since former boss Heinrich
Hiesinger threw in the towel.
“Our solution is responsible and equally serves the interests of
employees, customers and shareholders.”
Activist investors like Swedish investment firm Cevian and US hedge fund
Elliott have been pushing for a split between TK’s steelmaking arm, recently
merged with the European operations of India’s Tata, and the industrial side
of the business, which makes products from elevators to submarines and car
parts.
The shareholders argue that the division would unlock value for investors,
which the markets appeared to confirm Thursday when Thyssenkrupp stock soared
after the executive board announced the plan.
Supervisory board approval means that it only remains for the shareholders
to green-light the restructuring at a general meeting.
Executive board members said Thursday they would expect to begin the
process “in 12 to 18 months”.
BSS/AFP/HR/0930