[120516.EN.BIZ] German Rail to Unload a Minority Stake Worth US$5.7 Billion in Schenker

DEUTSCHE Bahn German railways has confirmed that it's going ahead with the sale of a stake in its DB Schenker forwarding and logistics arm, the London's Air Cargo News reported.

According to reports, DB would sell a stake of around 40-45 per cent in Schenker, valued at around EUR5 billion (US$5.7 billion).

The company confirmed 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.

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 EUR50 billion investment programme in its German rail business from 2016 to 2020.

Source : HKSG.