Deutsche Bahn may sell Schenker
2022.12.08 11:12
Deutsche Bahn may sell Schenker
Budrigannews.com – According to documents reviewed by Reuters on Thursday, the management board of German rail operator Deutsche Bahn has requested approval from its supervisory board to prepare a sale of its international logistics subsidiary Schenker.
In advance of the supervisory board meeting next week, internal documents state that management would be able to “examine and prepare a sale of up to 100% of the shares in Schenker” as a result of the formality.
This gives the state-backed train company the chance to think about selling the company to Schenker’s rivals or financial investors in whole or in part.
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Even though this is currently regarded as unlikely due to the volatile market environment, an initial public offering (IPO) would also be an option.
Deutsche Bahn’s spokesperson declined to comment.
Two people who are familiar with the situation claim that no formal mandate for the bank has yet been granted. According to the sources, formal pitches are anticipated for January.
Over the past few years, Schenker, which handles logistics for air, land, and sea freight, was responsible for more than a third of Deutsche Bahn’s sales. Schenker returned the entire group to profitability with an operating profit of almost 1.2 billion euros ($1.26 billion) in the first half of 2022.
Logistics operators have been in high demand as a result of the COVID pandemic and strained supply chains, and sea and air freight prices have increased significantly.
The proposal document continues, “The cash flows generated as part of a sale remain entirely within the Deutsche Bahn Group.” The rail operator’s debt should fall by about 30 billion euros as a result of this.
However, there has not yet been a final decision regarding the sale. Two sources stated that difficult financing conditions could also result in a decision not to sell, particularly if Deutsche Bahn is dissatisfied with the price.
One of the sources stated that strategic bidders would find it simpler to finance the 15-20 billion euro transaction solely with equity. This source added that Deutsche Bahn would have to sell a minority stake in order for private equity to be able to finance such a sum.
