KNDS Chairman says there are no discussions about complete nationalisation

KNDS Chairman Tom Enders has denied reports of nationalisation discussions, stating the company's financial situation is sound and an initial public offering remains the priority.

KNDS Chairman ​Tom Enders on Wednesday denied ​a media report ‌saying there ​had been discussions about complete nationalisation of the Franco-German tank maker, saying a stock market ‌listing would still be pursued.

"There are no discussions regarding full nationalization of KNDS and there is absolutely no reason for it," Enders told Reuters ‌in a written statement. "KNDS financial situation is extremely sound ‌with a massive order backlog. Working through KNDS backlog as quickly as possible is the operational challenge for the coming years. Government control can’t contribute to that," ⁠he ​said.

He added ⁠the immediate priority remains an IPO. Newspaper Handelsblatt on Tuesday cited German government sources as ⁠saying Germany is considering the option of taking KNDS under full state ​control jointly with France.

The defence contractor's future ownership became ⁠uncertain in early July when plans for an initial public offering were put on ⁠hold. The ​planned listing, announced in June, would have been among the European defence sector's largest IPOs in recent years with KNDS's ⁠family owners and the French state, which both hold 50% of shares, ⁠each selling ⁠10% to investors.

The families had also intended to sell their remaining 40% stake to the German state.