Thyssenkrupp has Plan B for steel if Kretinsky deal should fail, CFO says
Thyssenkrupp still focused on joint venture
Optimistic regarding talks with Kretinsky's EPCG
Thyssenkrupp's steel division and Kretinsky are currently working on a new business plan
Will seek talks with other steelmakers should that deal falter
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF, Oct 29 (Reuters) -Thyssenkrupp TKAG.DE is focused on a 50:50 steel joint venture with Czech billionaire Daniel Kretinsky but will seek talks with other steelmakers should that deal falter, as the ailing conglomerate is sketching out a potential plan B for the unit.
The conglomerate's new finance chief Jens Schulte, in the job since June, said he was optimistic regarding talks with Kretinsky's EPCG about raising its stake in Thyssenkrupp's steel division to 50% from 20%.
"We are confident that this process will lead to success," Schulte said in his first interview with international media, adding that EPCG could also simply decide to keep its current stake.
"And even in the event of a complete exit, our plan to gradually make the steel independent remains unchanged. We have also held talks with other industrial partners and steel companies in the past and, in case of doubt, we would resume these talks."
Schulte's comments reflect long-standing attempts by Thyssenkrupp to regain investor trust and revive its fortunes after repeatedly missing financial targets and restructuring milestones, causing its shares to trade near all-time lows.
Flagging potential alternatives should also reassure investors that Thyssenkrupp's plans to sell steel not solely hinge on Kretinsky after previous attempts to sell the division have failed several times in recent years.
Thyssenkrupp's steel division and Kretinsky are currently working on a new business plan, which would then form the basis for a mid-term funding assessment expected in spring 2025 as well as talks about EPCG raising its stake, Schulte said.
"If it comes to that, a fair and best ownership agreement will be negotiated between steel management, Mr. Kretinsky and employee representatives," Schulte said, adding the talks could take a while.
A sweeping restructuring of Thyssenkrupp Steel Europe (TKSE) could include a sale or closure of HKM, a steel joint venture with Salzgitter SZGG.DE and France's Vallourec VLLP.PA, with Schulte saying a mid-term funding assessment was in the works.
"We want to avoid at all costs that the company is bought and then goes into insolvency in an uncontrolled way," Schulte said, adding restructuring measures for the steel division will also expand to TKSE's sprawling set-up.
Schulte said TKSE activities ranged from operating locomotives to transport steel and intermediary products to owning stakes in ports and managing logistics parks.
"We're looking at all these areas and are considering how we can make them more efficient - whether we streamline, outsource or insource areas."
Reporting by Christoph Steitz and Tom Kaeckenhoff; editing by David Evans
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