The dispute between Triton and the KNDS tank maker is intensifying

They utilized to be allies: Triton's financial investor and KNDS's arms company. erstwhile the gearbox maker Renk , who equips tanks, frigates and icebreakers with his technology, dared to re-enter the stock marketplace in early 2024 after a failed attempt, the 2 gentlemen continued to act together: Triton, who took over Renk in 2020, and then withdrew him from the stock exchange and upgraded him through acquisitions, needed a strong partner for a re-IPO to give credibility to stock exchange history. Triton found this at KNDS's main client, whom he took as a base action – and gave him an option to later increase his share to 25 percent.

This option is presently the subject of a heated debate between the KNDS and Triton. While KNDS wants to take advantage of the option, Triton refuses to issue shares because, as the argument says, KNDS was incapable to get approval from the Italian government agency liable for controlling the investment until the deadline on Monday (12 May). On Monday, therefore, the KNDS filed an action release suit with the Frankfurt territory Court. The court had previously rejected an order prohibiting any another sale of shares. KNDS and Triton refused to comment on this.

A dispute of around EUR 500 million

The dispute is about large money - most likely about half a billion euros. In early 2024, KNDS became a major shareholder, holding a 6.7 percent stake in IPO Renk. The company secured an option for another 18.4% from the then majority shareholder of Renk, Triton, at a price higher than the issue price of EUR 15 per share but much lower than the current marketplace price. This would make Renk the largest shareholder of the company. Renk is 1 of the most crucial suppliers of KNDS. The company based in Augsburg develops gearboxes for the "Leopard 2" produced by KNDS, but besides for many another tank models worldwide.

The KNDS utilized this option in January. However, for Triton, this agreement is presently exceptionally unattractive, given the rapidly rising price of Renk shares. On the market, a financial investor could most likely get more than EUR 50 per Renk share alternatively of agreed EUR 20. This led to a legal dispute: Triton refused to issue the shares, citing the deficiency of consent of the Italian government agency liable for controlling the investment. The KNDS considers that this is not an obstacle – especially since Renk is represented only by the office and does not run its own factory.

The Frankfurt territory Court temporarily sided with Triton. ‘The competent Chamber of Commerce established after a brief examination that yet not all the final conditions of the options could be considered fulfilled’, explained the court spokesperson. (Ref.: 3-05 O 117/25) Without approval Italy could then set conditions and even order the withdrawal of decisions. That would besides hurt Renk.

The KNDS may appeal this decision to the Frankfurt National Court. However, the tank maker seemingly decided to file a suit immediately to force the release of the action.