Czech defence group CSG has offered to buy a stake in Franco-German tank maker KNDS from its German owner families, a source familiar with the situation told Reuters on Wednesday.
The families, however, are prioritising an initial public offering and a stake sale to the German government, the source added.
The Financial Times earlier reported CSG’s approach, which took place in recent weeks.
KNDS declined to comment. CSG had no immediate comment.
The bid comes as the families, which hold 50% of KNDS, pursue an IPO.
On Tuesday, sources told Reuters the German state – looking to safeguard national security interests – had moved closer to buying a stake in KNDS in a pre-IPO move, after sending a letter to the families outlining interest in acquiring a 30% to 40% stake.
The French state owns the remaining 50% in KNDS.
An IPO could value KNDS at around 20 billion euros ($23 billion).
CSG’s IPO earlier this year valued it at 25 billion euros, but its market capitalisation has since fallen to less than 16 billion euros as defence shares have broadly declined.
CSG has also rejected allegations by short-seller Hunterbrook Media questioning its business model and production capacity, which weighed on the shares this month.
Its shares were down 3.1% on Wednesday at 15.40 euros, well below the IPO price of 25 euros.
Source: Reuters.com