Thyssenkrupp could halve stake in Tata Steel joint venture in IPO

 

Thyssenkrupp could halve its stake in a planned European steel joint venture with Tata Steel if the owners decide to list it on the stock market within the first six years, a board member of the German company said.

Initially, Thyssenkrupp and Tata Steel will each own 50 percent of the venture and have committed to hold equal shares in the entity for the first six years, Thyssenkrupp personnel chief Oliver Burkhard told journalists on Friday.

In case of a listing, Thyssenkrupp and Tata Steel's joint ownership in the venture must not fall below 50.1 percent, he said, adding that Thyssenkrupp could theoretically reduce its own stake to, but not below, 25.05 percent.

 

Burkhard made the comments after the company reached a deal with steel workers to secure jobs and plants, a key condition for the joint venture to go ahead next year.