German rail to sell a minority stake in Schenker
05 / 05 / 2016
Deutsche Bahn (German railways) has confirmed plans to push ahead with the sale of a stake in its DB Schenker forwarding and logistics arm.
It confirmed today (5 May) that the management board is to develop an implementation plan for a third-party minority holding in DB Schenker, as well as its international train and buses arm, DB Arriva, with a final decision on whether to go ahead expected in the autumn.
According to reports, DB would sell a stake of around 40-45% in Schenker, valued at around €5bn.
DB supervisory board chairman, Professor Utz-Hellmuth Felchtsaid the move would help resolve a growing debt crisis at DB: "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 the financial scope necessary to continue the quality and investment campaign in Germany."
DB needs to fund a €50bn investment programme in its German rail business from 2016 to 2020.