Steel industry
Major shareholder is considering takeover offer for Salzgitter
There are still many unanswered questions about the possible offer from a majority shareholder in the steel manufacturer. But just the prospect of it makes stock marketers rejoice. But another shareholder is also having a say.
Surprising bang at Salzgitter: The steel company could possibly be taken over by its second largest shareholder. GP Günter Papenburg AG is considering a corresponding offer together with TSR Recycling GmbH & Co. KG, Salzgitter announced on Monday evening.
There are still many questions open – such as how the state of Lower Saxony behaves as the number one major shareholder and how much a possible takeover is worth to investors. But just the prospect of an offer made the stock exchangers rejoice.
This was a “welcome surprise” for investors, said one trader. While the price of the SDax company was recently at its lowest level in four years, it shot up by a good quarter to 17.60 euros shortly after trading began today. At this price, Salzgitter is valued on the stock exchange at just over one billion euros.
Possible offer subject to conditions
When the offer might come depends on several factors. A possible offer is, among other things, linked to the condition that the consortium, including its own share, receives at least 45 percent plus one share, it was said. The possible amount of the offer price has not yet been announced to the group.
According to its own statements, the family company GP Günter Papenburg is active in the areas of construction and projects, raw materials and logistics, technology and projects as well as recycling and utilization. Papenburg currently holds 25.10 percent of Salzgitter, second only to Lower Saxony – the state currently holds a 26.5 percent stake.
According to its own statements, the Lower Saxony state government is examining the “intended takeover of economic control over Salzgitter AG by GP Günter Papenburg Aktiengesellschaft and TSR Recycling GmbH & Co. KG as well as the associated legal and economic consequences very thoroughly.” When asked, they wanted to take the concerns of employees into particular account. A positioning of the content will only be possible after the examination has been completed.
“We remain firmly convinced of Salzgitter AG’s decision to move towards “green” steel and would like to continue to support the company constructively on this future-oriented path,” the state government’s statement continued.
Salzgitter is also tightening its belt
While competitor Thyssenkrupp announced job cuts, Salzgitter is also tightening its belt. At the end of October, management cut its forecast again – the third time this year. The group now expects an even greater decline in sales this year than before and a loss before taxes of up to 325 million euros.
Salzgitter boss Gunnar Groebler also announced stricter austerity measures, which are likely to particularly affect the retail business. The manager justified the tougher measures with the pronounced period of weakness in important target markets.
If there is a takeover of Salzgitter, it could also have an impact on the copper company Aurubis. Salzgitter currently holds around 30 percent of the shares. The Aurubis share rose by seven percent on Tuesday morning.
dpa
Source: Stern
