Deutsche Post AG supports Postbank strategic initiative
- Deutsche Post to participate in rights issue
- Capital measure to secure Postbank's further development
- Planned transaction with Deutsche Bank remains unchanged
The Supervisory Board of Deutsche Post AG has approved that Deutsche Post, as majority shareholder of Deutsche Postbank AG, will participate with up to 100 percent in the bank's planned capital increase. The Group thus supports the strategic initiative presented today by Postbank to further develop its successful strategy and a sustainable improvement of earnings quality. Deutsche Post fully believes in Postbank's business model and its growth prospects as one of Germany's leading retail banks.
"Our commitment to the planned capital increase shows that as a responsible majority owner of Postbank, we do not let our actions be decided by short-term market conditions. We will bring our 10-year partnership with Postbank to a successful end in a prudent manner and for the best long-term interest of the bank," said Deutsche Post World Net Chief Executive Officer Frank Appel. "We owe that to Postbank's customers and employees."
Deutsche Post has committed to subscribe to the planned rights issue of 54.8 million shares at the subscription price according to its stake of 50 percent plus one share in Postbank. As far as the subscription price does not exceed 18.25 euros, Deutsche Post has also committed to subscribe to all shares that are not taken up by the market at the subscription price. The maximum commitment by Deutsche Post thus would not exceed 1 billion euros, which it would finance out of the Group's cash flow.
As a result of this measure, Deutsche Post's stake in Postbank would initially increase to a maximum of 62.52 percent. The September agreement with Deutsche Bank AG, under which it will - upon antitrust and regulatory approvals - acquire a 29.75 percent stake in Postbank from Deutsche Post in the first quarter of 2009, remains in place.
The agreement foresees that Deutsche Bank will assume 29.75 percent of the newly issued shares from Deutsche Post at the subscription price, whereas the price for the old shares remains as agreed on. This also applies to the call/put option agreement with Deutsche Bank, which otherwise remains unchanged.
Chief Financial Officer John Allan will be available for questions during a telephone conference at 09.30 a.m. CET today. To dial in to the telephone conference with CFO John Allan, please use the following numbers:
- Germany: +49 (0)69 5007 1315
- USA: +1 718 354 1388
- Japan: +81 (0)3 3570 8228
- U.K. +44 (0)20 7806 1955
All participants will be asked to enter the following confirmation code: 7955694