Shareholder consortium prepares for voluntary buyout of Salzgitter AG shares

GP Günter Papenburg AG is considering taking control of the company through the acquisition of more than 45% of the shares together with TSR Recycling

GP Günter Papenburg AG, one of the key shareholders of German steelmaker Salzgitter AG, has officially announced its intention to initiate a voluntary buyout of the company’s shares. GP Günter Papenburg AG and TSR Recycling GmbH & Co. KG have formed a consortium that plans to make an offer to Salzgitter AG shareholders to buy out more than 45% of the company’s shares.

Currently, the terms of the potential transaction stipulate that the consortium must collect at least 45% plus one share by the deadline for acceptance of the offer to ensure the required level of control over the company. This also includes the existing shares held by GP Günter Papenburg AG, which is currently a significant shareholder of Salzgitter AG.

The final amount that the consortium is willing to pay for the Salzgitter AG shares is still open. The company is not announcing the price yet, but assures that it will comply with all regulatory requirements and inform the market about further actions in a timely manner. In the event that the consortium formally makes an offer, the Management Board and Supervisory Board of Salzgitter AG will provide their informed assessment of the transaction to help shareholders make an informed decision.

The news has generated considerable interest among investors and analysts, as Salzgitter AG is one of the leading steel companies in Germany and Europe. The potential takeover could have important implications for both the steel market and the entire industry, as the transfer of control to a single consortium could affect the company’s long-term strategy, investment projects, and market position.

Salzgitter increased its steel production by 6.2% in the first half of 2024 compared to the same period in 2023, to 3.33 million tons. Steel sales in January-June decreased by 10.2% y/y – to €5.24 billion. EBITDA fell by 45.6% y/y – to €233.6 million, while pre-tax profit fell by 94.6% y/y – to €11.5 million.