Deutsche Post World Net (DPWN) announced this afternoon that it has sold a stake of 29.75% inPostbank to Deutsche Bank for €2.79 billion in cash and has agreed options to sell the remainder of
its 50% plus one share within the next 2-3 years. DPWN is likely to return the sale proceeds toshareholders, and will focus in future on its core postal and logistics businesses.DPWN chief Frank Appel declared: “This transaction provides stability to Postbank and helpsrealising its ambitious growth targets, which we will continue to support in the future. This willallow us to focus on our core logistics businesses worldwide. We are the global market leader. Weare now focussing on organic growth, an even higher quality and full customer orientation.”
The cash proceeds from the Postbank sale will be a central component in the considerations toreturn cash to shareholders which are expected to be concluded later this year, the company said.Appel stressed at a press conference to present the transaction: “We have no plans for any largeM&A transactions.”
Asked about the progress of ongoing talks with UPS over a cooperation in the USA, the DPWN CEOdescribed them as “very complex” but said he expected to achieve a “good conclusion” soon. DPWN was“satisfied” with the progress of the US Express restructuring, and despite the US recession saw “noreason” at present to extend the scale of the announced restructuring measures, he added.
Under the Postbank transaction, which was approved by the DPWN supervisory board thismorning, Deutsche Bank (DB) will pay €57.25 per share for the 29.75% holding, and finance the bulkof the €2.79 billion acquisition price through an equity raising of up to €2 billion. Theacquisition is subject to regulatory and government approval, and will close in the first quarterof 2009.
In addition, DB has an option to acquire an additional 18% of Postbank for €55 per share between12 and 36 months after acquisition of the initial stake, and has a right of first refusal for DPWN’s remaining Postbank shares. At the same time, DPWN has a put option to sell its remaining stake of20.25% plus one share in Postbank to Deutsche Bank for €42.80 per share between 21 and 36 monthsafter selling the initial stake.
DPWN said in a statement that it will extend its existing retail outlet cooperation withPostbank beyond 2012, and that the sale would not impact on Postbank’s branch network.
Deutsche Bank chairman Josef Ackermann said: “Deutsche Bank has acquired a substantialshareholding in a leading retail bank in Germany on attractive terms. This is a sound financialinvestment, which strengthens our private and business clients activities and creates value for ourshareholders. Moreover, the option to increase our shareholding in Postbank in the future opens upadditional long term growth opportunities.”
Postbank CEO Wolfgang Klein added: “We welcome Deutsche Bank as our new largest shareholder.Postbank, with its unique retail platform, is key to profitable growth in the German retail bankingmarket. I am convinced that both, Deutsche Bank and Deutsche Postbank will benefit from each other’s strengths within this cooperation.”
