EXCLUSIVE-Thyssenkrupp to explore further options for boosting finances - memo

Credit: REUTERS/MICHAELA REHLE

Ailing conglomerate Thyssenkrupp is exploring further options for shoreing up its finances, which have been substantially depleted by the fallout from the coronavirus crisis, its management told staff in a letter.

By Tom Käckenhoff

DUESSELDORF, July 17 (Reuters) - Ailing conglomerate Thyssenkrupp TKAG.DE is exploring further options for shoreing up its finances, which have been substantially depleted by the fallout from the coronavirus crisis, its management told staff in a letter.

"With the losses already accumulated in the current financial year our leeway for shaping our future is significantly smaller than we had assumed prior to the crisis," the board said in the letter dated July 17 that was obtained by Reuters.

"From today's point of view a fast recovery of the industries we are serving is unlikely," the letter said.

The board said proceeds from the sale of its elevator unit, which was bought by a consortium led by Advent and Cinven CINV.UL for 17.2 billion euros ($19.6 billion) would only provide a short reprieve for the group.

A Thyssenkrupp spokesman declined to comment further on the contents of the letter.

Under pressure to deliver a convincing equity story after its most profitable business, elevators, was sold, Thyssenkrupp said it was exploring which financing support schemes or other "state instruments" of crisis intervention could be suitable.

($1 = 0.8758 euros)

(Writing by Christoph Steitz; Editing by Riham Alkousaa and Edward Taylor)

((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; Reuters Messaging: christoph.steitz.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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