Franco-German arms manufacturer KNDS has announced that it is postponing a planned stock market flotation which had been set to enable the German government to take a 40% stake in the company.
In a statement, KNDS put the postponement down to the current "volatility of the European defense sector" and said it was waiting for "more favorable market conditions."
KNDS, which produces German Leopard-2 and French Leclerc battle tanks, among other weapons systems, is currently owned 50-50 by the French state and the German Wegmann Group.
The initial public offering (IPO) in Paris and Frankfurt was set to see the French government reduce its shareholding to 40% and the German government take over 40% of the Wegmann stake for an estimated €7.2 billion ($8.25 billion), according to Der Spiegel magazine. The remaining 20% was to be floated publicly.
A precise date for the IPO hadn't officially been set, but German Defense Ministry documents seen by the AFP news agency had suggested early July. But the whole process has now been postponed.
