Tankmaker KNDS to decide on IPO within months, Germany could take stake, CEO says

Written by Sabine Sibold

CEO Jean-Paul Alari said on Monday that Amsterdam (Reuters)-the defense resource from Franco in the coming months will decide whether a first public offer will be launched next year.

Speaking to the journalists in Amsterdam, Alari said that the KNDS board told him that he was ready for public subscription, but no final decision has been made yet.

“As a first step, I cannot see … a reference shareholder will not be a German contributor,” Aryi told Reuters in the aftermath of the press conference in Amsterdam.

When asked if this means that the German government may take a stake in KNDS, he said: “It is logical that there is a first step like this.”

Alary, who held the position of CEO in April, confirmed that KNDS had talks with the German government about a minority from other things.

It was formed in 2015 with the merging of Germany Krauss -Maffei Wegmann (KMW) – which is famous for making leopard tanks – and the manufacture of French -owned weapons, former owners in KMW and the French government, are still joint contributions.

Reuters reported in February that KNDs were studying public subscription early in the end of this year.

European defense companies received a boost with an increase in military spending raised by Russia’s 2022 invasion of Ukraine, with governments moving to enhance their security while providing Kiev with weapons and ammunition.

In the long run, Alary said the list can open the company’s capital to refer to the shareholders associated with other European countries and work to provide funds to finance what he called Bold.

He added that the acquisition in Italy may be a single option, despite the latest kilo of flavor cars that have suffered regarding its attempt to defend IVECO.

“It would be a great opportunity to take a step forward in Italy. I hope this is the end of the game,” he said, stressing that it would be good that KNDS will have three main columns in Europe, including France, Germany and Italy.

When asked about potential investors in KNDS, Alari Rheinmetall, who continued to diversify while KNDS was dissolved, was excluded to remain dedicated to productive land systems.

He said that Airbus and Talis were not seen.

Alary said, at the same time, KNDS aims to name a new president in the coming weeks, before the possible announcement of the new capital structure.

“I think that the new president should be fully involved in putting the finishing touches on this main decision,” he said.

Alari said that the company can also start using its French factory to help produce compact components in Germany.

Legal requirements were forced to KNDS to produce old weapons KMW and Nexter in countries where intellectual property rights are held, creating a great obstacle to integrating the integrated company.

“We have some scenarios that may be logical and this ability can provide manufacturing by 2026,” Al -Alayari said, adding that the plans will require a permit by the authorities.

When asked about when the first joint battle tank will be built – a vehicle to replace the German leopard and French leclerc, which could also be the first joint product of the German company Franco – Alary said it might be ready between 2032 and 2035.

(Participated in the reports of Sabine Sibold; edited by Joe Pavier)