ThyssenKrupp considers share sale but not imminent -Report
Financial sources said that ThyssenKrupp has begun sounding out investors on a capital increase planned for the autumn, but the German steelmaker added it would have to reach a deal to sell its operations in the Americas before making any decision.
ThyssenKrupp, which is due to report Q3 results on Tuesday, was poised to sell up to EUR 1 billion in new shares. It cited company sources and political sources in the Ruhr region.
The newspaper said the sale would take place in September at the very latest, possibly even in August.
A spokesman for ThyssenKrupp said, however, that any decision to bolster its balance sheet would be taken only after the company clinches a sale of Steel Americas, its troubled steel operations in Brazil and the US state of Alabama.
Several financial sources added that enticing investors to buy into a capital hike before the sale of that business made no sense.
One of the sources said that "A capital hike before the sale of the steel operations is unlikely. That would mean a very deep discount."
Currently, ThyssenKrupp is in advanced talks with a preferred bidder, who the sources identify as Brazilian steelmaker CSN. It said in May it expected to reach an agreement promptly.
Source - Reuters