German-French tank manufacturer KNDS is reportedly on track to become a state-owned enterprise. The initial plan for an initial public offering (IPO) is no longer being pursued, according to the newspaper “Handelsblatt”. Instead, the German owners intend to sell their shares to the Federal Government. A definitive decision is expected within the coming weeks, with negotiations primarily focusing on the final purchase price.
KNDS is responsible for building the German Leopard 2 main battle tank, among other vehicles. Currently, the German families Braunbehrens and Bode hold half of the shares through the Wegmann Holding, while the other 50 percent is owned by the French state. The original proposal involved the German state purchasing 40 percent of the company, France reducing its stake to 40 percent, and the remaining 20 percent going public.
However, the IPO has been postponed several times. This delay is attributed to the challenging market environment for defense stocks. Consequently, the ownership families currently perceive no viable opportunity to generate at least 15 billion euros through the planned stock market listing, as had been hoped previously.
The Federal Government views taking over all 50 percent of the KNDS shares held by the families as crucial for preventing French dominance within the tank-making company, as noted in the report. Neither KNDS, the Wegmann Holding, nor the Ministry of Economic Affairs commented on the process.
