Thyssenkrupp considering Marine Systems deal with Carlyle
By Andrey Sychev, Emma-Victoria Farr and Tom Käckenhoff
(Reuters) -Thyssenkrupp is considering selling a stake in its Marine Systems unit which builds naval ships and submarines to investment firm Carlyle, the German conglomerate said on Tuesday.
"With the active involvement of Carlyle, we are now taking the necessary next step and starting the phase of an open-ended assessment of the relevant business activities," Executive Board member Volkmar Dinstuhl said in a statement.
The Marine Systems unit has an enterprise value of between 1.2-1.6 billion euros ($1.3-1.7 billion), sources familiar with the matter said.
Carlyle confirmed its involvement in the talks but declined to elaborate.
Thyssenkrupp is aiming to sell a stake of around 25% in its marine systems unit mainly due to the burden of providing billions of euros of guarantees to clients.
Baader bank analyst Christian Obst said the divestment was a positive step but noted it would require a lot of management's attention.
"For some investors, Thyssenkrupp is not investable because of Marine Systems, its last remaining defence activities. The cash inflow of pre-payments is volatile. And the long-lasting orders require high guarantees," he said.
A sale to Carlyle is one of several options the firm is currently considering, board member Dinstuhl added.
At the same time, talks are being held with the German government on the state's participation in Thyssenkrupp's marine business, the company said.
The defence ministry declined to comment on ongoing procedures within the federal government.
State lender KfW was considering taking a stake in Marine Systems, Thyssenkrupp board member Oliver Burkhard said in early February citing talks with the bank.
No proposal for a decision has been put on the table yet, a senior government official told Reuters. Germany's IG Metall union said it is open to the deal, but added jobs and plant locations must be kept and called for swift negotiations with Carlyle while supporting the government in taking a stake as well.
Thyssenkrupp shares, which had risen 2% in premarket trade in Frankfurt, were down 0.8% by 1145 GMT.
($1 = 0.9217 euros)
(Reporting by Andrey Sychev, Tom Kaeckenhoff, and Emma-Victoria Farr, additional reporting by Christian Kraemer, Alexander Ratz, and Paolo Laudani; editing by and Louise Heavens and Jason Neely)
