Thomas Enders, Chairman of the Supervisory Board of the defense conglomerate KNDS, insists that the arms manufacturer should pursue an initial public offering (IPO) despite the planned involvement of the state. Writing a guest contribution in the “Handelsblatt”, Enders stated, “The IPO should be rapidly pursued as soon as market prerequisites are met. Following that, the state shares should be reduced gradually and in parallel. National security interests can be protected without states having to permanently control businesses.”
KNDS, alongside Rheinmetall, is one of Europe’s two largest producers of military technology. However, according to information from the “Handelsblatt”, the company postponed its planned IPO for this year indefinitely. Instead, the German government is now examining the takeover of shares from the Wegmann Group, which holds 50 percent stake in the joint venture alongside the French state.
For Enders, the former Airbus executive, this planned state entry is merely a temporary step. “A transitional solution must not be confused with a long-term sustainable business model,” he wrote.
Enders referenced the extensive privatization of the aircraft manufacturer Airbus. He noted that state holdings were limited, France’s previous rights of influence were largely abolished, and an independent Supervisory Board was established. He concluded with a strong statement, saying that if KNDS were one day described as a “second Airbus,” it would not be a criticism, but rather a compliment and a testament to success.
