German steel giant Thyssenkrupp looking to sell elevator division
Thyssenkrupp has launched a formal process to sell its elevator business rather than planning an initial public offering (IPO), as pressure builds on the German industrial giant’s chief executive to turn around its fortunes.
The 218-year-old conglomerate has been weighing up what to do with the division for months, all-the-while issuing repeated profit warnings to markets amid its share price shedding half its value in the last year.
But in recent days, top-level management is said to have written letters to potential interested parties, asking them to submit an offer to buy out the elevator arm, causing shares to spike this afternoon.
Thyssenkrupp’s market value had risen 3.3 per cent in afternoon trading.
The firm is still open to floating the division on the stock market, but is now formally examining expressions of interest from potential buyers. The unit has been valued between £11bn and £15bn.
“We have clearly stated that, in addition to preparing for the IPO, we are also examining expressions of interest from potentially interested parties,” a spokesman for the group said in e-mailed comments.
Funds including Advent, Apollo, CVC, Carlyle and KKR are interested in the business
Main image: Getty