FRANKFURT, Feb 3 (Reuters) - A top-20 investor of
Thyssenkrupp on Friday called for a fast disposal of
the German industrial group's warship and submarine division,
saying the risks associated with the business outweighed
potential benefits.
"We demand the immediate sale of all defense activities. The
reputational and compliance risk of this business segment stands
in no relation to the profit generated by the division," said
Ingo Speich, head of sustainability and corporate governance at
Deka Investment.
According to Refinitiv Eikon data, Deka holds 0.45% of
Thyssenkrupp shares, making it the company's 12th-biggest
shareholder.
Thyssenkrupp is weighing what it calls a standalone solution
for its defense division, Thyssenkrupp Marine Systems (TKMS),
which potentially covers partnerships, joint ventures or any
other form of consolidation.
The group has been in favour of a consolidation of the
European defense sector, which could gain momentum through
Germany's decision to beef up its armed forces via a 100
billion-euro special budget.
"Even a partial sale would be a step in the right
direction," Speich said in a speech embargoed for the start of
Thyssenkrupp's annual general meeting.
TKMS posted sales of 1.8 billion euros in the last fiscal
year that ended in September, while adjusted operating profit
was 32 million euros. It employs around 6,900 staff.
(Reporting by Christoph Steitz in Frankfurt
Editing by Matthew Lewis)
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