News - 6 June 2008
Deutsche Bahn listing set for November
According to press reports in Germany, the IPO of Deutsche Bahn will start on 5th November. The German Government plans to sell 24.9% of the Company’s transport, logistics and services businesses to private investors which, it is though, will raise somewhere between €5.0 billion to €8.0 billion.
Deutsche Bahn will become a holding company, controlling 75.1% of passenger and freight transport and all of the division operating stations and the rail network. Reports suggest that 20 percentage points out of the 24.5 percent in the units to be sold will be reserved for funds and banks, between 3.0% and 4.0% will go to small investors and 1.0% will be reserved for Deutsche Bahn employees. In recent weeks, Russia's state railroad has been the first company to show serious interest in buying a stake in Deutsche Bahn. The head of Russian state-run railroad RJD, the world's second-largest railroad, has acknowledged that the company is mulling a stake in Deutsche Bahn According to the reports, Deutsche Bahn targets proceeds in a range of €3.0 billion to €4.0 billion, significantly below previous estimates. It is expected that most of the money raised in the flotation would go to the government, with a share set aside for financing Deutsche Bahn's investment plans in Germany and other European countries.
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