The privatisation of Deutsche Post continues apace with the German government announcing it is to sell a further 12% of their shares. As has happened before, the state-owned KfW bank will buy them and will later place them on the open market when it believes conditions are most favourable. The move will reduce Berlin’s direct stake in Deutsche Post to 8% and means KfW will own just under half of its shares.
This latest tranche is valued at an estimated 1.7 billion euros. The German government is pressing ahead with the privatisation of both Deutsche Post and Deutsche Telekom – of which it owns 38% – in order to cover a budget shortfall. It has been reported it is also looking to transfer shares in Deutsche Telekom to KfW this year worth somewhere less that 10 billion euros.
Deutsche Post shares gained nearly 2% on the news.