The German government will buy a 25.1% stake in defense supplier Hensoldt AG from KKR & Co. for 464 million euros ($562 million), Reuters reported Saturday, citing people familiar with the matter.
The purchase is intended to prevent a foreign buyer from taking control of Hensoldt, according to the report. KKR retained a stake of more than 60% in the company following an initial public offering in September.
The German government has the power to block unwanted takeovers that present potential interference and security threat. The state had the option to buy the Hensoldt stake from KKR for a maximum price of 600 million euros.
Hensoldt shares rose 4.1% on Friday to the highest level since the late-September IPO. That valued the company at just shy of 1.4 billion euros.
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