Thyssenkrupp hydrogen IPO plans face market headwinds - sources

Mcphy Energy SA

21/02/2022 15:07

By Christoph Steitz and Tom Käckenhoff
    FRANKFURT/DUESSELDORF, Feb 21 (Reuters) - A steep drop in
hydrogen shares is likely to hit the valuation of Thyssenkrupp's
 TKAG.DE  hydrogen unit Nucera, according to investor and
financial sources, which could make it more challenging to list
the division in a potential share sale.
    Putting a value on Nucera has been a challenge from the
get-go, with analysts giving a range of 3 billion to 6 billion
euros ($3.4 billion to $6.8 billion) for the business,
reflecting the uncertainty relating to the booming hydrogen
sector.
    "The prices investors are prepared to pay for such assets
have come down," said Ingo Speich, head of sustainability and
corporate governance at Deka Investment, a top-20 shareholder of
Thyssenkrupp.
    "It's not because the quality of the asset has changed, but
due to the changed market conditions and the fact that these
business models are no longer valued that highly."
    Shares in Nucera's rivals have slumped, with Norway's NEL
ASA  NEL.OL , Britain's ITM Power  ITM.L  and France's McPhy
Energy  MCPHY.PA  all down more than half over the past 12
months.
    They have underperformed global  .MIWD00000PUS  and European
 .STOXX  stocks, which have gained 3-4% over the same period, as
well as renewables stocks  .FTET50 , which have fallen 9%.
    Thyssenkrupp has said an IPO of Nucera could happen in the
first half of 2022 but the group still needs to make a firm
decision in favour of such a move and has left the door open to
a partial sale.
    Nucera, which is co-owned by Thyssenkrupp and Italy's De
Nora  IPO-DENR.MI  in a 66-34 split, is the world's top supplier
of chlor-alkali membrane technologies needed to produce hydrogen
and is also active in alkaline water electrolysis.
    "Valuation certainly depends on the market environment. And
that's rather fragile at the moment," said Marc Tuengler of DSW,
a lobby group that represents Thyssenkrupp's private
shareholders. "Time is pressing."
    In a note published after Nucera's capital markets day in
January, analysts at Bank of America attributed a value of 2.3
billion euros for Thyssenkrupp's 66% stake in Nucera, which
indicates 3.4 billion euros for the whole business.
    A person familiar with the matter said the asset was
currently valued at 3 billion to 4 billion euros.
    Thyssenkrupp declined to comment.
    In the fiscal year to September, Nucera posted operating
profit of 27 million euros, while sales came in at 319 million,
a level expected to triple to 900 million to 1 billion by
2025-26.
    "The multiple that Nucera might have received nine months
ago can no longer be reached that easily," Deka's Speich said.
($1 = 0.8830 euros)

 (Reporting by Christoph Steitz and Tom Kaeckenhoff;
Editing by Bernadette Baum)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))