Thyssenkrupp: Material Services spin confirmed. IPO by end 2026 – c. 50% of market cap.

Research evidence excerpt

Thyssenkrupp: Material Services spin confirmed. IPO by end 2026 – c. 50% of market cap.

Accessible version

Thyssenkrupp

Material Services spin confirmed. IPO by

end 2026 – c. 50% of market cap.

Reiterate Rating: BUY | PO: 15.00 EUR | Price: 11.18 EUR

tk accelis = Material Services. Spin off by end 2026 17 June 2026

ThyssenKrupp (TKA) announced Supervisory Board approval of plans to establish “tk Equity

accelis” (= Material Services, i.e. steel distribution) as an independent company, by way

of a spin-off and IPO. tk accelis to be listed on Frankfurt Stock Exchange by end 2026, Jason Fairclough >> Research Analyst

with ThyssenKrupp retaining a 51% stake in the listed company. Next steps: Approval of MLI (UK)

an EGM, expected on 7 August 2026. Reiterate Buy, price objective EUR15, 1x our +44jason.fairclough@bofa.com20 7995 0225

multiple-derived SOTP. We see value in shares and see imminent opportunities to Reinhardt van der Walt >>

unlock value (Material Services & Steel). Elevator stake value crystallization “in process”. Research Analyst

MLI (UK)

Material (material) value release, c.50% of market cap PaulResearchKirjanovsAnalyst>>

TKA’s Materials Services business is a (mainly) steel distribution business akin to MLI (UK)

Reliance or Kloeckner. We note that Worthington Steel (not covered) a US steel Felicity Robson >>

processor & distributor, recently agreed to purchase Kloeckner (not covered) a European ResearchMLI (UK) Analyst

steel distribution business). We value Materials Services at c. EUR3.5 bn, roughly in line Commodity Research

with the business’ working capital. As with last year’s Marine spin, we consider Michael Widmer

materiality of potential value release relative to current market cap i.e. EUR3.5 bn is c. CommodityMLI (UK) Strategist

50% of market cap.