Stork's IPO ambitions may be hit by opposition to fighter jets

Thursday 05 July 2012

Possible plans for a stock exchange listing by industrial group Stork could be thwarted because parliament no longer backs buying the JSF jet fighter, the Financieele Dagblad said on Thursday.

In particular, the Fokker Technologies division is likely to be hit, Stork's chief executive Sjoerd Vollebregt told the paper in an interview.

'Separate listings of the two divisions Fokker Technologies and Industrial Services is not the only option but the one we prefer,' he said. 'But you need a certain size to do that, and if the JSF goes, Fokker will be too small to list,' he said.

Opposition

Earlier this week it emerged a majority of MPs now oppose replacing the armed forces' ageing F-16 fighter jets with the JSF. The rising price of its development and construction has brought growing opposition and the final decision to purchase has been delayed by past coalitions.

When the project was first put forward in 2002, the cost was put at €4.5bn and the first plane was due to be operational in 2014. The price of the 85 aircraft has now risen to over €64m each, with an initial delivery date of 2019.

However, RTL news reports that ministers will ignore a motion calling for the pull-out which is likely to be backed by MPs later on Thursday.

As well as Stork, other Dutch firms have warned of the knock-on effect of pulling out of the project, which is expected to generate billions of euros in orders for Dutch firms. The contracts are conditional on the Netherlands buying the finished planes.

The FD says Stork has the biggest financial interest in ensuring the project continues.

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