Thyssenkrupp shareholders will vote on Friday on the planned spin-off its defence division, amid expectations that its value may increase due to a radical change in European defence spending. NATO members in Europe are increasing their defense budgets as a response to Donald Trump's stance. This has led to a rise in the share prices of companies within the sector.

Thyssenkrupp’s division TKMS – which manufactures submarines, frigates, and mine-sweeping technology – has seen its order book grow to over 18 billion euros ($21billion) from just 11.7 billion dollars at the end September of last year. This has led to a rise in the parent company's shares, which have doubled since January. Thyssenkrupp intends to sell 49% of TKMS back to existing shareholders, while holding the remaining stake.

The general meeting starts at 8am GMT. A vote will take place later that day, following an exchange of views between the management and investors. This includes the Alfried Krupp von Bohlen und Halbach Foundation, Thyssenkrupp’s largest shareholder.

Analysts believe that the spin-off will take place in the second half of this year. Thyssenkrupp, however, has not yet specified the exact date. Berlin and Thyssenkrupp reached a preliminary deal last month that ensures the German government will maintain influence over TKMS.

(source: Reuters)