Major Salzgitter shareholder mulls takeover bid
Adds background and details throughout
Nov 4 (Reuters) -Salzgitter SZGG.DE said on Monday its second-biggest shareholder GP Günter Papenburg was considering a potential takeover of the German steelmaker jointly with a partner.
The potential offer will go through if the two-party consortium, consisting of TSR Recycling, reaches a shareholding of at least 45% plus one share in Salzgitter.
Salzgitter did not disclose the potential price of the offer in its statement.
Frankfurt-listed shares in the company SZGG.F were up nearly 26% at 1854 GMT on the news.
GP Günter Papenburg already holds 25.1% in Salzgitter, slightly less than the 26.5% owned by the German state of Lower Saxony, where Salzgitter is based.
Salzgitter in August started to implement cost cutting measures across its businesses, after the tough steel market in Germany led to a net loss in the second quarter.
In July, Thyssenkrupp TKGA.DE, Salzgitter and France's Vallourec VLLP.PA were reviewing a sale of their steel joint venture HKM after they were approached by a potential buyer.
Thyssenkrupp is focused on a 50:50 steel joint venture with Czech billionaire Daniel Kretinsky, Reuters reported in October. A sweeping restructuring of Thyssenkrupp Steel Europe could include a sale or closure of HKM.
In October, Salzgitter cut its full-year forecast and reported a drop in its earnings during the first nine months of 2024, against the backdrop of a sustained weak economic environment.
Reporting by Urvi Dugar; Editing by Anil D'Silva, Shailesh Kuber and Christoph Steitz
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