Largest German shipyard, TKMS, achieves autonomy
TKMS Spin-off and Supervisory Board Structure Sparks Debate
German naval shipbuilder ThyssenKrupp Marine Systems (TKMS) is embarking on a new journey towards independence, with a significant order backlog of over €18 billion and a planned stock market listing. However, the proposed composition of TKMS's supervisory board has raised concerns among financial experts and minority shareholders.
The new supervisory board for TKMS AG & Co. KGaA, set to be established after the spin-off from Thyssenkrupp, will consist of 10 members. Four of these members will be independent representatives, while six are expected to be appointed by Thyssenkrupp, reflecting the parent company's 51% majority stake in TKMS. This structure has sparked debate, with critics arguing that the dominance of Thyssenkrupp-appointed members compromises the company's true independence.
Hendrik Schmidt from DWS described the supervisory board as "a journey under supervision, with the parent company as a shadow captain on the bridge." He emphasized the need for a supervisory board primarily composed of independent members to protect minority shareholders' interests.
Despite the concerns, the spin-off aims to provide TKMS with greater autonomy, access to capital markets, and entrepreneurial flexibility. The arrangement combines independent development advantages with the stability of a strong anchor shareholder in Thyssenkrupp.
TKMS has recently secured several significant orders, including the construction of the new German research ship 'Polarstern 2' with an order volume of around €1.2 billion and two more submarines for the Indo-Pacific region from Singapore. The company is a world leader in conventionally powered submarines, also building frigates and corvettes.
The spin-off of the TKMS division from Thyssenkrupp has been approved by shareholders, and the new company is expected to be entered into the commercial register by mid-October, with a stock market listing to follow immediately. A security agreement is being planned between TKMS and the federal government for sensitive activities, granting the federal government special information and consultation rights.
Oliver Burkhard serves as the CEO of TKMS, leading a workforce of around 8,300 employees across shipyard locations in Kiel, Wismar, Itajaí, Brazil, and further sites in Hamburg, Bremen, and Emden. The federal government's entry into TKMS remains possible, but it is not part of the current plan.
As TKMS navigates its new path towards independence, the debate surrounding the supervisory board structure continues. With the company's significant orders and promising future, it remains to be seen how this structure will impact TKMS's growth and the interests of its shareholders.
The proposed supervisory board structure for TKMS, with a majority of members appointed by Thyssenkrupp, has sparked a debate among financial experts and minority shareholders, with concerns that it compromises the company's true independence, as highlighted by Hendrik Schmidt from DWS. However, the spin-off aims to provide TKMS with greater autonomy, access to capital markets, and entrepreneurial flexibility, as it leverages technology and business strategies to secure significant orders in the defense and naval shipbuilding sector.
