MTU Aero Engines Announces Share Price

MTU Aero Engines, Germany's leading maker of engines for both civilian and military aircraft, said Tuesday that its shares would be issued at a price of 19-22 euros ($23-27) when it goes public on June 6. With MTU set to issue a total 35.65 million shares in all, the initial public offering (IPO) will raise 667-784 million euros for the group. Current shareholders were selling around 16 million shares and another 15 million would come from a capital increase. Existing shareholders could sell the additional 4.65 million shares as part of a so-called "greenshoe" option if investor interest is sufficiently strong. Investors could apply for the shares between May 25 and June 3 and the shares would be listed on the stock exchange from June 6, MTU said. MTU Aero Engines, which supplies engines for the German army and for Airbus A380, A318 and A400M aircraft, was acquired by US private equity group KKR from automaker DaimlerChrysler at the end of 2003. MTU Aero Engines booked sales of 525.8 million euros in the first quarter of 2005 and employs a workforce of 7,240.