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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.
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.
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