The Czech arms group Czechoslovak Group (CSG) has made an offer to purchase a significant stake in the Franco-German tank manufacturer KNDS, reports the Financial Times.
The offer was made to German families owning half of the company in recent weeks. The amount and exact size of the proposed stake are not disclosed.
CSG's offer marks a new attempt to consolidate the European defense industry, but experts believe it may face resistance from Paris and Berlin.
Currently, KNDS is owned by German families and France, who have a direct political interest in maintaining control over the manufacturer of key weapons, including Leopard 2 tanks and Caesar howitzers.
Nuances of Arms Trading
CSG's offer coincided with KNDS's plans to conduct its own initial public offering, with an estimated capitalization of €15–20 billion, scheduled for early July. However, these plans are complicated by the overall decline in defense sector stocks and internal disagreements within Germany's ruling coalition.
Previously, shares of CSG itself, which conducted the largest IPO in defense history, sharply fell following accusations from the seller Hunterbrook, which the company denies.
CSG was valued at approximately €30 billion during its January listing in Amsterdam, making it the largest defense IPO and prompting other European defense companies, including KNDS, to prepare their own offerings amid rising investor interest in the sector.
At the same time, shares of defense corporations have recently shown correction: Rheinmetall's stock has lost about 30% since the beginning of the year.
Leave a comment