Foundation Krupp-Stiftiung, the largest shareholder in thyssenkrupp AG, has signalled its approval in principle for a spin-off of the steelmaking division thyssenkrupp Steel.
The Essen-based foundation is thyssenkrupp AG’s anchor in the group’s roots on the Ruhr. In the past, it used to hold a stake of above 25%, and now still holds 21%.
Its chairwoman, Ursula Gather, in an interview has signalled goodwill for the AG’s plans to make tk Steel an independent company: This involves the possibility of a partial flotation on the stock market, or a partial sale (see Kallanish passim). Parent tk AG intends to keep half in tk Steel.
“I think the time is right for such a step,” Gather said in an interview with daily Westdeutsche Allgemeine Zeitung (WAZ). She noted that the restructuring of the steel division has gained progress, the sale of the 50% in mill Hüttenwerke Krupp-Mannesmann (HKM) to Salzgitter has been finalised and European steelmakers are currently enjoying protection from the EU’s safeguard measures.
“This dynamic environment should be used,” she was quoted as saying.
The foundation’s expression of goodwill alone is unlikely to advance the spin-off of tk Steel. Previous attempts by the parent company to sell or partner the business, including with Tata and Jindal, have failed. While prospects of thyssenkrupp’s steel distribution arm, tk accelis, appear relatively strong, the outlook for tk Steel remains far less certain.
The foundation, however, typically avoids involvement in thyssenkrupp’s operational and management decisions and can remain absent from public view for extended periods. Given the rarity of interviews with its representatives, Gather’s remarks should be viewed as a vote of confidence in the spin-off process.
