Main investor Salzgitter reduces stake in the company

Salzgitter’s main shareholder, construction conglomerate GP Günter Papenburg, has reduced its stake in the steelmaker to less than 25%. This is according to press reports citing Manager Magazin.

Although GP Papenburg has not officially confirmed its intention to sell its shares, a recently published voting rights report indicates that the company has already reduced its stake to 24.12%. This reduction is cause for concern, as the next reporting threshold is 20%.

The state of Lower Saxony is once again becoming Salzgitter’s largest shareholder, owning 26.5% of the capital. Manager Magazin also suggested that the company, under the control of the federal state, could become part of a German steel conglomerate alongside Thyssenkrupp. However, analysts call the scenario speculative, as Thyssenkrupp is currently in talks to sell its steel division to Jindal Steel.

The news caused Salzgitter’s share price to fall by 6.3% on November 21.

It should be recalled that in April this year, Salzgitter decided to terminate negotiations with the consortium of GP Günter Papenburg and TSR Recycling GmbH & Co. regarding a possible takeover. As noted by the company, the parties had significantly different views on the current and future value of the assets.

As reported by GMK Center, in October, Salzgitter began placing €500 million in senior unsecured bonds of copper producer Aurubis. The funds were to be used for general business purposes, further expenses of the first phase of SALCOS, and restructuring measures. The bonds were also issued to diversify the group’s financing structure and maturities.