Thyssenkrupp considering IPO or SPAC for hydrogen business, says CEO
German multinational Thyssenkrupp is considering an initial public offering (IPO) or a deal with a special purpose acquisition company (SPAC) for its hydrogen business, Martina Merz, its chief executive, has said.
A 66-34 joint venture of Thyssenkrupp and Italy’s De Nora, Thyssenkrupp Uhde Chlorine Engineers (TKUCE), is the world’s largest supplier of chlor-alkali membrane technologies used to produce hydrogen.
In a call with analysts, Merz said Thyssenkrupp has hired an investment bank to explore strategic options for the business and to come up with proposals by the summer.
Two people familiar with the matter said the bank was Citi, which declined to comment.
“The main objective behind it is to fund further growth in this business. So we would want to dedicate the potential funds into growth. And that can, of course, mean also to find partners in order to grow,” Merz said.
Special acquisition companies – SPACs – have risen to prominence during the pandemic in the US and in parts of Europe.
Also known as blank cheque vehicles, SPACs raise capital through a public listing with the purpose of acquiring an existing company. They’re often considered an alternative to an IPO and offer private companies a faster and more predictable way to go public.
TKUCE, rivals of which include Norway’s Nel ASA, the UK’s ITM Power and France’s McPhy Energy SAS, has a fair value of €2.8bn, Credit Suisse wrote in a note last month.
TKUCE was carved out of Thyssenkrupp’s Plant Technology division due to its growth prospects.
Thyssenkrupp declined to comment on the name of the investment bank it had hired or the estimated sales figure.
It referred to TKUCE’s most recent orders, which includes a deal to deliver a 20 megawatt hydrogen production unit to US-based CF Industries.