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(Sharecast News) - France and Germany are to become equal shareholders in tank manufacturer KNDS ahead of a possible IPO of the Amsterdam-based defence contractor, after an agreement that will see Germany snap up a 40% stake.
A framework between the two nations was announced on Monday that will see France reduce its shareholding from 50% to 40%, and Germany seek up to a 40% stake by buying a position from the family-owned German industrial holding company Wegmann-Gruppe.
According to a Bloomberg report on Sunday, KNDS could be valued at 15bn to 18bn, with an IPO announcement possible by early this week as the company seeks a dual listing in Frankfurt and Paris.
"This agreement reflects the shared determination of France and Germany to strengthen Europe's industrial and defence capabilities, support their armed forces, and strengthen European sovereignty over the long term," the two nations said in a joint statement.
"By setting out this Franco-German framework, the two States have taken a decisive step towards strengthening their common sovereignty in land defence."
KNDS, which was formed in 2015 following the merger of Krauss-Maffei Wegmann and Nexter Systems, is known for its Leopard and Leclerc battle tanks, and employs over 11,000 people.
According to an Associated Press report, Germany and France would both look to cut their holdings to around 30% two to three years after a public flotation, but aim to maintain equal voting rights.
"A stake by Germany in KNDS will secure long-term influence over a company that is strategically important for European security and defense capabilities," according to a separate statement from the German government.
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