The German government and state of Lower Saxony are likely to acquire about 80% of Meyer Werft to secure the future of the company, one of the world’s largest cruise shipbuilders, two sources familiar with the situation told Reuters on Tuesday.
Under the plan to keep the 229-year-old company afloat, the family that currently wholly owns it would keep a roughly 20% stake as a temporary step in the coming years before being offered a kind of buyback option, said the sources, asking not to be identified as they were not authorised to speak to media.
The plan envisions the federal and state government injecting about 200 million euros ($223 million) each in equity, and offering state guarantees for 80% of the roughly 2.3 billion euros in required bank loans for the company.
A Meyer Werft spokesperson said talks on saving the company were constructive, declining further comment.
Lower Saxony’s economy minister, Olaf Lies, is due to make a statement on Meyer Werft in the state parliament on Wednesday.
German Chancellor Olaf Scholz visited the shipbuilder in northwestern Germany last week to assure workers the shipyard would continue to operate.
The company said earlier in August it had booked orders worth 11 billion euros in recent months, including from U.S. entertainment group Disney.
But the shipbuilder, whose customers pay for the bulk of their luxury liners only upon delivery, has a financing gap of almost 2.8 billion euros due to the delayed effects of a lull in demand during the COVID-19 pandemic.
Source: Reuters.com