* Bank to propose hydrogen options by summer - CEO
* Thyssenkrupp working with Citi - sources
* Thyssenkrupp owns 66% stake in TKUCE
* TKUCE has fair value of 2.8 bln euros - Credit Suisse
(Adds CEO comment, detail on hydrogen business)
By Christoph Steitz and Arno Schuetze
FRANKFURT, May 11 (Reuters) - Thyssenkrupp is
considering an initial public offering (IPO) or a deal with a
special purpose acquisition company (SPAC) for its hydrogen
business, Chief Executive Martina Merz said on Tuesday.
A 66-34 joint venture of Thyssenkrupp and Italy's De Nora
<IPO-DENR.MI>, Thyssenkrupp Uhde Chlorine Engineers (TKUCE) is
the world's largest supplier of chlor-alkali membrane
technologies used to produce hydrogen.
In a call with analysts, Merz said Thyssenkrupp has hired an
investment bank to explore strategic options for the business
and to come up with proposals by the summer.
Two people familiar with the matter said the bank was Citi
. Citi declined to comment.
"The main objective behind it is to fund further growth in
this business. So we would want to dedicate the potential funds
into growth. And that can, of course, mean also to find partners
in order to grow," Merz said.
TKUCE, rivals of which include Norway's Nel ASA,
Britain's ITM Power and France's McPhy Energy SAS
, has a fair value of 2.8 billion euros ($3.4
billion), Credit Suisse wrote in a note last month.
TKUCE, which sources say has annual sales in the
double-digit million euro range, was carved out of
Thyssenkrupp's Plant Technology division due to its growth
prospects.
Thyssenkrupp declined to comment on the name of the
investment bank it had hired or the estimated sales figure.
It referred to TKUCE's most recent orders, which includes a
deal to deliver a 20 megawatt hydrogen production unit to
U.S.-based CF Industries.
($1 = 0.8227 euros)
(Reporting by Christoph Steitz and Arno Schuetze; Editing by
Kirsti Knolle and David Clarke)
Itm Power (ITM)