Deutsche Post is now only 25% state-owned after the German government today cashed in on thecompany’s recent higher share price to sell a 5% stake for about €924 million.
The state-owned KfW bank, which holds various state stakes in partially-privatised companies,announced it completed the sale of 60 million Deutsche Post AG shares for a price of €15.40. Thesale increased the German postal group’s free float from about 69.5% to around 74.5%, and reducedthe KfW’s stake to 25.5%.
The bank said it remained Deutsche Post AG’s largest shareholder with an aggregate holding ofapproximately 25.5% after completion of the placement and had also entered into a lock-up agreementof 90 days for the sale of any further shares.
“In consultation with the Ministry of Finance, KfW decided to take advantage of the favourableconditions in the equity markets in order to continue the successful privatisation process ofDeutsche Post”, commented Dr Günther Bräunig, member of KfW’s Executive board.
Deutsche Post’s share price has risen strongly in recent months from below €13.50 in Junetowards the €16 level in early September. Today the stock dropped back 4.16% to €15.32 by lateafternoon trading.
The sale marks the latest stage in the ongoing privatisation of Deutsche Post. The IPO tookplace in November 2000 at a price of €21.00 per share and the German government has sold offfurther tranches several times over the last decade. Most shares are now owned by institutionalinvestors, primarily from the UK, US and Germany, while private shareholders hold about 10% ofcompany shares.
The further selloff of a state holding in Deutsche Post was welcomed by Germany’s InternationalExpress Association (BIEK). Its president, Gunnar Uldall, described it as “a further step towardsmore competition in the postal market”.
He added: “The objective of a complete government separation from Deutsche Post AG shouldcontinue to be pursued. There is no reason why the government should be the main shareholder in aworldwide active logistics company.”
Meanwhile, the German government this week also proposed a reform of the German postal law toencourage more competition. The economics ministry circulated a proposal to other governmentministries under which Deutsche Post would have to seek advance approval from the postal regulatorfor bulk mail contracts with large customers in order to avoid pricing abuse and competitors wouldhave the right to force the regulator to investigate cases of alleged abuse.
