50 million papers
Federal government sells postal shares and plugs budget hole
February 6, 2024, 6:59 p.m
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The federal government is putting Post shares on the market for more than two billion euros. The income should be invested in the expansion of the rail network.
The Federal Republic of Germany is reducing its stake in Deutsche Post. As the state-owned bank KFW announced, it will sell 50 million shares via an accelerated placement process. As a result, your stake in the logistics group will fall from currently just under 20.5 to 16.5 percent. The placement with institutional investors is expected to begin later today. Based on today’s closing price of 44.41 euros, KFW could receive proceeds of a good 2.2 billion euros. Even after the transaction is completed, KFW will remain the largest individual shareholder in Deutsche Post. She has committed not to sell any more shares for 90 days.
The federal government expects billions in income from the sale of federal holdings this year. In a draft resolution for the adjustment meeting of the Bundestag’s budget committee, four billion euros were mentioned. Among other things, the money is intended to strengthen the railway’s equity capital in order to cover investment needs. The federal government has stakes in Deutsche Telekom, Post (DHL) and Commerzbank, among others. The Coba package is worth around two billion euros. The problem for years: Given the current share price, the government would have to sell its securities at a loss. The proceeds would also go to the SOFFIN bank rescue fund and not flow into the budget.
The energy supplier Uniper has been almost completely nationalized. The EU Commission’s competition requirements stipulate that the shareholding must be reduced to a maximum of 25 percent plus one share by 2028 at the latest. According to an insider, the federal government could start selling Uniper shares this year.
The state holds a blocking minority of 25.1 percent in the defense company Hensoldt and a package of 10.8 percent in the aircraft manufacturer Airbus. A sale of shares in the biotech company CureVac, which is listed in the USA, would bring significantly less. The federal government has a 13.3 percent stake in the company.
The energy company Sefe, formerly Gazprom Germania, is completely state-owned. The federal government holds 20 percent of the network operator 50Hertz and 24.95 percent of the EnBW network subsidiary TransnetBW. All three of these companies are not listed on the stock exchange.
The sales became additionally necessary after a ruling by the Federal Constitutional Court left a gap in the federal budget amounting to a good 17 billion euros.