TAUFKIRCHEN (dpa-AFX) - The defense electronics supplier Hensoldt is planning a takeover and may want to raise fresh money on the market by increasing its capital. Hensoldt is currently negotiating exclusively about a purchase of ESG Elektroniksystem- und Logistik-GmbH, the MDax company from Taufkirchen said on Monday evening. The capital increase is expected to amount to up to ten percent of the share capital, probably from authorized capital with simplified exclusion of subscription rights. As a shareholder with a 25.1 percent stake, the federal government has, to Hensoldt's knowledge, begun preparations to participate in a possible capital increase in order to maintain its shareholding. The Hensoldt share subsequently fell by a good four percent below the Xetra closing price on the Tradegate trading platform.

According to the company, the possible acquisition of ESG would strengthen key technologies in Germany. A number of points still need to be clarified, but the management expects the talks to be successfully concluded by the beginning of December. In addition, official approval of the takeover would probably be required. The company did not provide any information on a possible purchase price. At the Xetra close, Hensoldt was valued at around 2.9 billion euros. Up to ten percent of new shares would therefore mean up to 290 million euros, although companies generally have to offer new shares at a discount. Another major shareholder, also holding 25.1 percent, is the Italian defense and aviation group Leonardo.