Thyssenkrupp owners approve materials spinoff in latest restructuring move

By Christoph Steitz

FRANKFURT, Aug 7 (Reuters) - Shareholders of Thyssenkrupp approved the proposed spinoff of the group's materials trading division on Friday, its largest by sales, in the latest step by the German industrial conglomerate to simplify its sprawling structure.

The spinoff of 49% of tk accelis – which wholesales raw materials such as steel and alloys, and runs warehouses to store them – continues Thyssenkrupp's overhaul after separate listings of its hydrogen and defence divisions in recent years.

The move, which received 99.99% of votes at an extraordinary general meeting on Friday, could see tk accelis list separately at the end of October, with Thyssenkrupp retaining a majority.

LEGAL FORM IN FOCUS

Top-20 shareholder DWS had said on Friday it would abstain from voting on the spinoff, criticising the planned legal form of tk accelis that means parent Thyssenkrupp will retain far-reaching control over the subsidiary despite a separate listing.

"Anyone who takes a company public must also be prepared to allow independent oversight and to genuinely share control," said DWS's corporate governance expert Philipp Weinmann.

According to analysts at Jefferies, tk accelis – which employs around 15,500 staff, is active in 30 countries and had sales of €11.4 billion in the last fiscal year – could achieve an enterprise value of around €3.6 billion ($4.2 billion).

At a capital markets day last month, tk accelis said it was targeting an adjusted margin for earnings before interest, tax, depreciation and amortisation of 4% to 5%, compared with 2% during the 2024/2025 fiscal year.

The business, which counts Airbus, BP, Tesla and Volkswagen among its customers, is on the lookout for acquisitions in North America, it said in June, singling out the fragmented precious metals market there.

($1 = 0.8656 euros)

(Reporting by Christoph Steitz, editing by Thomas Seythal, Andrei Khalip, Elaine Hardcastle)