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Deutsche Bahn to sell minority shares as part of restructure plans

6 May 2016  •  Author: Mandy Parrett, Editorial Assistant

Deutsche Bahn Supervisory Board will make the final decision this autumn to financially secure its quality and investment strategy in Germany by selling minority shares in DB Arriva and DB Schenker.

Deutsche Bahn to sell minority shares as part of restructure plans

Copyright Deutsche Bahn AG

The planned measures aim to secure the financial stability of the company providing the ability to properly invest in – and secure – the future growth of both companies.  

Deutsche Bahn makes plans for stable future

Following a meeting of the supervisory board in Berlin this week, the Chairman, Prof. Utz-Hellmuth Felcht, commented: “If we do not take countermeasures, the Group’s debt will increase significantly by 2020. The equity of third parties limits this debt and creates financial flexibility to continue our quality and investment plans in Germany. “

Between 2016 and 2020 the planned gross investment will be approximately 55 billion euro, 90 percent of which will be directed toward rail operations in Germany. Of the total investment, 20 billion euros must be financed from DB’s own resources. DB CEO, Dr. Rüdiger Grube said: “Our express intention is that DB Arriva and DB Schenker will be fully consolidated in DB’s balance sheet.”

As part of the Group’s restructuring plans, the Supervisory Board decided to dissolve the two-story structure of holding company Deutsche Bahn AG and DB Mobility Logistics AG, which will result in DB AG being merged with DB ML AG. 

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