Thyssenkrupp announces record-setting annual share increase - a crucial aspect of the pending steel agreement
Thyssenkrupp's MDAX stock has reached its highest level since 2021, gaining around four percent on Thursday, following positive developments in the steel sector. The stock of Thyssenkrupp (WKN: 750000) has reached a new high of 11.92 euros, 45 percent above the crash low following the August results.
The new high for Thyssenkrupp's stock is a significant milestone, marking a recovery from the sell-off following the company's quarterly results. The key driver behind this upward trend appears to be the potential sale of Thyssenkrupp's steel division.
Despite many unanswered questions, DER AKTIONÄR welcomes Jindal's interest in Thyssenkrupp's steel division. The Indian company Jindal Steel International is currently in negotiations with Thyssenkrupp regarding a potential purchase of the steel division. However, it's important to note that there is no indication that Jindal currently holds any share in Thyssenkrupp's steel division, as their offer is described as a binding purchase interest and not a share acquisition.
The upcoming spin-off of the lucrative marine division TKMS is expected to act as a catalyst, further boosting investor confidence. The stock market is responding positively to these new developments, with the stock market experts predicting that the stock could break through the 12 euro mark in the near future.
However, the key variable in any takeover and bid for Thyssenkrupp's steel division is likely to be pension liabilities, according to Citigroup's assessment. These pension liabilities stand at around 3.5 billion euros for Thyssenkrupp. Deconsolidating these pension liabilities could likely result in a value increase for Thyssenkrupp's parent company in any scenario.
The potential impetus for Thyssenkrupp's stock from a possible sale of its steel division is not just about the immediate financial gain. The additional offer from Jindal Steel is expected to accelerate restructuring at Thyssenkrupp, which could lead to long-term stability and growth for the company.
Thyssenkrupp is currently in talks with EP Holdings, a group owned by Czech billionaire Daniel Kretinsky, which already holds a 20 percent stake in the steel division. A timeline for the potential acquisition of Thyssenkrupp's steel division by Jindal Steel has been outlined for the near future.
As these negotiations progress, Thyssenkrupp's MDAX stock remains exciting for the coming weeks. The positive response from the stock market indicates that investors are optimistic about the future of Thyssenkrupp, particularly in the steel sector. The potential sale of the steel division, combined with the spin-off of TKMS, could mark a new chapter for the company.
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