German steel giant ThyssenKrupp AG (TYEKF) is exploring the possibility of selling part of its European steel business, the Rheinische Post reported Saturday, citing sources close to the company. The sale would reportedly concern a minority stake.
ThyssenKrupp had said in February that it will cut 2,000 jobs as part of a restructuring program at its European steel business amid a "worsening steel climate in Europe". At that time, the company also said it was looking into the closure, relocation or sale of business units and facilities at Steel Europe, which currently has a workforce of around 27,600.
State-owned RAG Foundation is reportedly considering buying a stake in ThyssenKrupp. The move would ensure that the German state of North Rhine-Westphalia, which owns the RAG Foundation, would maintain its veto power after a possible increase in ThyssenKrupp's capital stock.
Currently the Krupp Foundation holds 25.3 percent of ThyssenKrupp's shares. However, that stake could reduce to 17 percent after a possible capital increase and as it reportedly lacks funds to buy more shares.
In mid-May, ThyssenKrupp reported a wider loss for its second quarter as results were impacted by a further impairment charge of 683 million euros associated with its Brazil and US steel plants that it is divesting.
The company's net loss for the quarter widened to 656 million euros or 1.28 euros per share from 587 million euros or 1.14 euros per share in the year-ago period.
TYEKF closed Friday's trading at $19.86, up $1.26 or 6.77 percent on a volume of 900 shares.
by RTT Staff Writer
For comments and feedback: email@example.com