UK defense company Babcock International is pursuing several international warship deals, as orders roll in amid increased European defense spending https://t.co/SW8OBIzLLp ...

Core Insights - TKMS is preparing for a stand-alone future as it renegotiates project guarantees with parent company Thyssenkrupp, indicating tougher conditions ahead [1][3] - Thyssenkrupp will spin off 49% of TKMS on October 20, as part of its restructuring efforts to highlight the value of defense assets [1][3] Financial Arrangements - Thyssenkrupp has issued parent company guarantees worth approximately 10 billion euros ($11.56 billion) to TKMS, which are crucial for safeguarding the division's orders [2] - The annual fee charged by Thyssenkrupp for these guarantees has been fixed at 85,000 euros, leading to stable annual costs for TKMS between 13.3 million euros and 15.3 million euros for the years 2022-2024 [2] - The renegotiated terms for existing guarantees will result in escalating fixed annual fees starting from the 2025 fiscal year [3][4] Future Financing - TKMS has secured commitments for about 2.5 billion euros in bank guarantees, which are expected to cover its needs through September 2027 [4] - The company aims to avoid relying on further guarantees from Thyssenkrupp and will seek alternative arrangements with clients and banks [4] Market Valuation - Brokerage Jefferies estimates that TKMS shares could trade at around 36.55 euros each, based on a valuation of 2.3 billion euros [5]