Deutsche Post will earn €5 billion from the sale of its Postbank shares to Deutsche Bank and isunaffected by yesterday’s major announcement from Deutsche Bank of an offer to buy out the
remaining Postbank shareholders.Deutsche Bank, which currently owns 29.95% in Germany’s largest retail bank, announced that itplans to offer €24 – €25 per share to buy out the other shareholders.
Deutsche Post currently has a 39.5% stake in Postbank while the other shares are held byinstitutional investors (21.4%) and private investors (9.2%).
CEO Josef Ackermann confirmed today that the bank will spend a total of €6.3 billion to gainfull ownership of Postbank, comprising €5 billion for Deutsche Post’s former and existing sharesand a further €1.3 billion for the shares of other investors. The bank will reportedly save €1.7billion by bringing forward its offer to independent shareholders and only offering the legallyminimum price.
Under a complex deal dating back to 2008/09, Deutsche Bank has agreed to buy all of DeutschePost’s shares in Postbank as part of the latter’s strategic withdrawal from the banking business.In a three-stage transaction, Deutsche Post will earn €5 billion for its Postbank shares due toguaranteed valuations and prices. The Bonn-based company has so far sold a 22.9% stake in Postbankto Deutsche Bank and received €4.2 billion for the first tranche and an advance payment.
Under the transaction agreement, Deutsche Bank will receive a further 27.4% stake in Postbankfrom Deutsche Post after three years upon maturity of mandatory bonds exchangeable into Postbankshares. For the remaining 12.1% stake put and call options are in place, for which the exerciseperiods are set between the 36th and 48th month after closing.
