DB Plans to Sell Shares of Arriva and Schenker

German rail company Deutsche Bahn (DB) has confirmed its supervisory board will develop a plan to sell a minority stake in its international passenger business DB Arriva and logistics subsidiary DB Schenker.

DB Plans to Sell Shares of Arriva and Schenker
May 16, 2016 8:59 am

The board plans to pass a final resolution later this year to financially secure the quality and investment campaign in Germany.

As part of group restructuring, DB Mobility Logistics (DB ML) will be merged with holding company DB.

Board chairman Utz-Hellmuth Felcht said: “If we don’t take action, the group’s debt will increase substantially by 2020. A third-party equity interest limits the level of debt and creates financial scope necessary to continue the quality and investment campaign in Germany.”

In a statement, DB said between 2016 and 2020 the company plans to invest €55bn. Of this, 90% will be spent on rail operations in Germany, while €20bn will need to be financed by the group.

DB’s management board chairman Dr Rüdiger Grube stated: “Our express intention is for DB Arriva and DB Schenker to continue to be fully consolidated in DB’s balance sheet.”

As part of restructuring, the DB Group supervisory board also decided to dissolve the two-tiered holding structure, merging DB and DB ML.

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