OHB SE Faces Regulatory Delays in KKR Takeover

As KKR's acquisition of OHB SE's free float awaits approval from regulatory authorities across several European countries, the closing of the transaction is now pushed to potentially Q2 or Q3 of 2024. According to analyst Henry Wendisch of NuWays AG, the necessary Foreign Direct Investment approvals from Germany, Belgium, and Sweden are still pending, though approvals from seven other relevant countries have been obtained.

This delay affects KKR's ability to finalize the transaction, which includes a planned cash takeover offer to OHB shareholders at €44.00 per share. Furthermore, the strategic investment group has already increased their stake in OHB through a 10% capital increase last year, now holding a total of 28.64% of shares in direct and indirect ownership.

The expected path following the regulatory approval includes the delisting of OHB SE and a subsequent squeeze-out of remaining shareholders. KKR and associated parties might soon reach the 95% ownership threshold, enabling them to squeeze out other shareholders under German corporate law.

Amid these structural changes, OHB SE reported significant financial results for FY’23, driven largely by a one-time positive effect from transitioning its Rocket Factory Augsburg stake to equity accounting, leading to a €76 million boost in EBITDA.