KKR believes that space flight in Europe has a lot of promise. The monetary investor buys stock in Bremen-based OHB, a space corporation. OHB is getting out of the stock market. Under Marco Fuchs’ direction, the Fuchs family continues to retain the majority of the stock.
OHB, a Bremen-based aerospace business, will delist from the stock market and bring on US financial backer KKR. On Monday, KKR announced a buyout bid for the firm at 44 euros per share, valued at 768 million euros. The Fuchs family, which owns slightly less than 70% of OHB, will keep their shares. With the buyout offer, a 10% stock increase, and a capital infusion for the Augsburg-based space business Rocket Factory, KKR is investing a total of up to 338 million euros into OHB. On Monday, the price of OHB’s stock increased by almost 30% to roughly 42 euros.
KKR is “the ideal partner who supports our long-term growth and vision as a minority investor,” according to CEO Marco Fuchs (61), who will continue to head OHB for another five years. The family took the initiative to make the investment.
OHB creates and manufactures satellites and other technologies utilized, for instance, in the International Space Station (ISS) or the European Galileo satellite navigation system. According to the corporation, OHB aspires to dominate the European market as a provider of space services to businesses and governments. OHB had 3000 workers and produced more than one billion euros in revenue the previous year. “The demand for space solutions will increase globally. We believe that Europe has enormous potential, said Christian Ollig, CEO of KKR Germany.
Additional research and development spending will be needed for this. The OHB shares, which do not belong to the family, are being offered by KKR for 233 million euros. In addition, KKR will make a capital increase contribution of 76 million euros at the same price. Rocket Factory will get an additional 30 million euros via a convertible bond. The start-up is developing a small-load launch vehicle that will make its first space launch this year.
A 37 percent premium
The KKR offer is a premium of over 37% over Friday’s closing price. OHB said that outside of the stock market, it could more effectively carry out its long-term strategy. OHB had traditionally been a wallflower due to its modest free float.