KNDS Strikes Dual-State Deal and Sheds Renk Stake in Sprint to Summer IPO

European defence giant KNDS pockets €262M from block trade, cuts Renk holding to 10%, as France and Germany lock in parity ahead of June IPO with €23.5B order backlog.

The European defence giant KNDS has kick-started its march to a public listing by pocketing €262 million from the sale of 5.8 million shares in transmission specialist Renk. The block trade, placed with institutional investors, cuts KNDS’s holding in Renk to just 10% but leaves the two companies’ operational ties intact – Renk will continue supplying gearboxes for the Leopard 2 main battle tank.

The cash injection comes as Berlin and Paris reshuffle the ownership deck ahead of a dual IPO in Frankfurt and Paris. Germany has acquired a 40% stake in KNDS, buying out the German family shareholders of Krauss-Maffei Wegmann and valuing the entire group at a minimum of €20 billion. France retains an identical 40% block, and the two governments have locked in strict voting parity to prevent the political gridlock that has historically plagued joint European defence programmes.

Both capitals intend to gradually reduce their holdings to 30% over the next two to three years, with the German government planning to sell down within three years. The placement price for Berlin’s stake will be directly linked to the upcoming issue price of the shares, ensuring alignment with the IPO. KNDS chairman Tom Enders has publicly backed the exit strategy, while CEO Jean-Paul Alary welcomed the German state’s entry as a stabilising force.

Operationally, KNDS is firing on all cylinders. The company booked more than €11 billion in new orders during 2024, swelling its total order backlog to €23.5 billion. That pipeline, which includes a recent British Army contract for 72 remote-controlled RCH 155 howitzers – with chassis to be built at KNDS’s Stockport plant and deliveries starting in 2028 – guarantees factory utilisation for years and provides the growth narrative needed to lure equity investors.

Management has dismissed any speculation about delays to the float, insisting preparations are on schedule. With the order book brimming, the ownership structure clarified and a modest free float of around 20% expected at listing, KNDS is now in the final straight for a June debut that will give investors direct exposure to one of Europe’s most strategically important defence contractors.