Thyssenkrupp preps floatation of hydrogen business - report
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German industrial group Thyssenkrupp AG (ETR:TKA) is said to be preparing to float its electrolysis unit Uhde as early as the first quarter of next year in a transaction that could value the business at about EUR 5 billion (USD 5.72bn), Bloomberg said on Monday, citing sources with knowledge of the matter.
With the move, the group is seeking to cash in on the increasing demand for hydrogen technologies as it is amid a radical restructuring aimed at improving profitability.
A traditional initial public offering (IPO) is reportedly preferred to a combination with a blank-check company.
Citigroup Inc (NYSE:C) has been hired to help with the process and more banks could join the US financial institution in the next weeks, the report says.
A final decision is yet to be made.
Uhde Chlorine Engineers was created in 2015 as a joint venture between Thyssenkrupp and Italy's Industrie De Nora in which the German group owns the majority stake. Based in Dortmund and with sites in Okayama, Tokyo, Shanghai, Milan and Houston, the business offers solutions for electrolysis plants and chlor-alkali membrane technologies used in the production of hydrogen.
Thyssenkrupp has been exploring options for the hydrogen unit since the spring and CFO Klaus Keysberg said in August that the group was considering divesting a stake in the unit or finding a strategic partner.
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