Thyssenkrupp shareholders have approved the spin-off of the company’s marine division, Thyssenkrupp Marine Systems (TKMS). The shareholders’ meeting on Friday saw 99.9% of present shareholders, representing almost 56% of the company’s share capital, vote in favour of the proposal. The new entity, TKMS, is set to be listed on the Frankfurt stock exchange in mid-October. Thyssenkrupp AG will retain a 51% stake and appoint a majority of the supervisory board, giving it control over the new company.

Existing Thyssenkrupp shareholders will receive 49% of the shares in TKMS, with one TKMS share allocated for every twenty Thyssenkrupp shares. Thyssenkrupp CEO Miguel López stated that the marine division has an order book of €18 billion, with work scheduled until early 2040. He mentioned the “enormous growth potential” driven by NATO member states’ military investments. The German state will maintain a right of first refusal on share sales, which allows it to prevent unwanted investors from taking a stake.

López suggested the TKMS spin-off could serve as a model for how the company plans to handle other divisions in the future. The separation was not without criticism from shareholders, including Florian Honselmann of the SdK shareholders’ association and Hendrik Schmidt of DWS. They argued that the retained control by the parent company and the continued connection between the two entities make the chosen structure unattractive for investors.