Thyssenkrupp to kick off auction for plant building unit-sources (updated)
24/01/2020 17:03
* Plant Technology could be sold in parts - sources
* Division makes cement, chemicals, fertiliser plants
* Unit made 145 mln eur operating loss in 2018/19
(Adds details)
By Christoph Steitz and Arno Schuetze
FRANKFURT, Jan 24 (Reuters) - Ailing German conglomerate
Thyssenkrupp TKAG.DE is planning to kick off the auction for
its plant-building unit soon, two people familiar with the
matter said, adding the business is unlikely to fetch sizeable
offers.
First information packages on Plant Technology (PT), which
builds cement, fertiliser and chemical plants, could be sent out
as soon as next week or in February, the people said, adding the
unit may end up being sold off in parts to several buyers.
PT, which has emerged from Thyssenkrupp's Industrial
Solutions segment, made sales of 2.9 billion euros ($3.2
billion) last year and an adjusted loss before interest and tax
of 145 million in the 2018/19 fiscal year.
It employs 11,419 staff and has an order backlog of 4.85
billion euros. In the current fiscal year, sales are expected to
grow significantly while operating losses are seen narrowing,
Thyssenkrupp has said.
The conglomerate, which is in the process of divesting or
listing its elevator division, said in November it was looking
to develop PT "together with partners or under a new roof".
"You won't see a big price tag. It's really about ending the
pain," one of the sources said.
Companies such as Sinoma 600970.SS and China National
Machinery Industry Corp (Sinomach) CNMAC.UL , Sweden's Sandvik
SAND.ST and Denmark's FLSmidth FLS.CO are expected to look
at the asset, the people said.
Rivals also include Saipem SPMI.MI and Maire Tecnimont
MTCM.MI from Italy, U.S.-based Fluor FLR.N , Japan's Asahi
Kasei 3407.T , Germany's KHD Humboldt Wedag KWGG.DE and Metso
METSO.HE and Outotec OTE1V.HE from Finland.
The sales process, managed by Citi C.N , could result in
rivals buying a minority stake in the unit, the sources said,
adding that such a scenario would avoid writedowns Thyssenkrupp
might have to book in case of a full divestment.
Thyssenkrupp, FLSmidth, Citi and Sandvik all declined to
comment. Sinoma and Sinomach were not immediately available for
comment.
($1 = 0.9014 euros)
(Editing by Thomas Seythal and Louise Heavens)
((christoph.steitz@thomsonreuters.com; +49 69 7565 1269;
Reuters Messaging:
christoph.steitz.thomsonreuters.com@reuters.net))