Germany’s state-owned KfW Bank has announced the launch of a placement of 50 million shares of its holding in Deutsche Post AG through an accelerated bookbuild process. The share placement is targeted at institutional investors, according to a statement released by KfW.
Following the transaction, KfW will remain the largest shareholder of Deutsche Post, albeit with a reduced stake. KfW’s holding in the logistics and postal services company will decrease from approximately 20.5% to around 16.5%, resulting in an increase in Deutsche Post’s free float.
This move aligns with Germany’s broader strategy to raise funds by divesting stakes in some of the more than 100 companies it owns. The German government aims to raise up to 4 billion euros this year through such stake sales, as outlined in documents from the German finance ministry.
In December, German Finance Minister Christian Lindner announced plans to use funds raised from the privatization of stakes in government-owned companies to partly upgrade the state railway firm Deutsche Bahn. This decision was part of a long-awaited agreement on Germany’s 2024 budget.
The sale of KfW’s Deutsche Post shares adds to a series of large stock sales by European companies in the past year, as shareholders seized opportunities to raise capital in a challenging period for capital market transactions. Notably, the London Stock Exchange Group and Heineken were among the companies that conducted significant stock sales during this period.
Governments across Europe have also participated in these stock sales, with Italy selling shares in Banca Monte dei Paschi and Greece divesting stakes in several local lenders. These divestments reflect a broader trend of governments seeking to streamline their portfolios and raise funds through the sale of non-core assets.
(Source: Investing.com | Bloomberg | Reuters | Market Screener)
