OHB Shares Plunge 10.9% as AGM Approves €1.2 Billion Convertible Plan While KKR Prepares Block Sale

A perfect AGM vote and a record order book failed to protect OHB from a brutal sell-off on Tuesday, as investors focused on two separate dilution threats hanging over the space and defence stock. The shares crashed 10.89% to €372.50, widening the gap from the May all-time high of €688 to nearly 46%.

The primary source of anxiety is the block of shares private equity giant KKR plans to place on the market. The firm, which holds roughly 29% of OHB, intends to offload around 20% of the company before the end of June. That transaction, valued at more than €1 billion, would boost the free float from its current ultra-thin level to approximately 26%. Until the sale is completed, the overhang is expected to cap any upward momentum.

Adding to the pressure: the green light from shareholders to issue up to €1.2 billion in convertible and warrant bonds, along with profit participation rights, through 2031. While management insisted no concrete issuance is imminent, the authorisation – approved alongside new authorised and conditional capital – gives the company a powerful financing tool that also carries the risk of future dilution.

Should investors sell immediately? Or is it worth buying OHB SE?

Operationally, the picture is far rosier. OHB ended the first quarter with a record backlog of €3.35 billion, a 45% jump year-on-year. To handle that workload, the company is bringing in Dr Luis Alejandro Orellano as its first-ever chief operating officer, effective 1 July. The aerospace engineer, recruited from Rohde & Schwarz’s technology systems division, previously oversaw production at Thyssen-Krupp Marine Systems, Daimler-Chrysler and Bombardier. His immediate task will be to ramp up serial production in anticipation of large defence contracts.

The AGM on 8 June passed every resolution with comfortable majorities, unsurprising given the clear voting blocs. The Fuchs family controls roughly two-thirds of the shares, with KKR holding the rest. Dr Theodor Weimer joined the supervisory board for a three-year term, replacing Claire Wellby, after winning 99.81% of the votes cast. The meeting also confirmed an unchanged dividend of €0.60 per share.

Despite Tuesday’s rout, the stock still shows a year-to-date gain of 206.58% – a reflection of the extraordinary rally that drove it to a record €688 in May. The volatility remains extreme, and the current price is roughly 46% below that peak.

The next major catalyst could come as early as this week: the ILA Berlin air show, which starts on 10 June, where OHB is expected to announce new mission contracts. Meanwhile, the market will be watching the calendar closely – the KKR placement is due before 30 June, and the company plans to release second-quarter results on 6 August, followed by third-quarter figures on 12 November.

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