Germany's state-run development bank has sold its stake in the company that owns the state postal service for about 2.1 billion euros ($2.3 billion).
BERLIN — Germany's state-owned development bank will sell its stake in the company that owns the state-run postal service for about 2.17 billion euros ($2.3 billion), reducing the government's stake and raising funds for improvements to the country's rail network. We raised funds to do so.
KfW Bank, whose remaining stake in the once state-owned company was held by the government, announced late Tuesday that it had sold 50 million shares in Deutsche Post. The company still trades under the name Deutsche Post, but it still trades on exchanges under that name. DHL Group — 43.45 euros each. This is equivalent to 4% of the company's stock.
The sale will reduce the state's stake in DHL to 16.5%, but it will remain the state's largest single shareholder. The Finance Ministry announced Wednesday that the proceeds will be used to recapitalize Germany's main rail operator, state-owned Deutsche Bahn, and help improve rail infrastructure.
The government will use proceeds from privatization to fund improvements to the rail network after a court ruling closes a gaping hole in this year's budget and forces it to reconsider its broader fiscal plans.
Germany's Supreme Court ruled in November that the government's decision in 2022 to repurpose 60 billion euros, originally intended to mitigate the impact of the coronavirus pandemic, to fight climate change and modernize the country. was disabled. This move ran afoul of Germany's strict self-imposed limits on debt growth.
