Dr. Herbert Aly, CEO of Blohm + Voss, told Frankfurter Allgemeine Zeitung newspaper on Monday:
“In four, five years..if we’ve done our homework and proved our business model in the market, there’s nothing to say we won’t review strategic investors, but also a stock exchange listing would be conceivable.”
The yard is a reasonably exceptional case, having a diverse portfolio which includes ship conversion and ship component production as well as producing some of the world’s largest yachts, including 96m Palladium and 162m Eclipse. Nevertheless, the idea throws up possibilities for an alternative investment procedure for shipyards that could prove attractive in the current economic climate.
Blohm + Voss was sold to fund management firm STAR Capital in December 2011
Yards are almost entirely funded through private investments, but loans from banks carry high premiums in today’s volatile economy. Funding through a public listing on the other hand, although costly in terms of higher regulation procedures, could ultimately offset cost by its greater investment achieved by flotation.
Barbara Jolly, yacht and aircraft manager at Abacus Trust* was very positive about the implications of a Stock Market flotation for the industry:
“If (Blohm + Voss) went into a public market, it would bring a wider market of investors which has to be a good thing.
"Everything is funded by private investment at the moment which is a heavy burden on banks….and limits the scope of fund raising.
"The news shows a high degree of confidence in the marine market and Blohm + Voss as a firm."
Blohm + Voss was acquired by STAR Capital Partners (“STAR Capital”), a leading European fund manager focused on investing in capital-intensive businesses in December 2011. STAR Capital bought the company from ThyssenKrupp AG, the diversified industrial group based in Germany. At that time STAR Capital confirmed it would commit significant amounts of capital to the business to take advantage of growth opportunities.
*Abacus Trust is one of the sponsors at the Superyacht Fiscal Summit on 29 March
in London where other financial and taxation issues will be discussed.
Blohm + Voss Profile | Blohm + Voss Website
Abacus Trust Company Profile | Abacus Trust Website
STAR Capital Website
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