Deutsche Post DHL completes Postbank transaction
- Deutsche Post DHL transfers an additional 27.4 percent of shares to Deutsche Bank as mandatory exchangeable bond matures; put option for the remaining 12.1 percent exercised
- Group CEO Frank Appel: "Focus on core competencies in mail and global logistics businesses"
Deutsche Post DHL has successfully completed its exit from the banking business. Upon the maturity of a mandatory exchangeable bond on February 27, Deutsche Post DHL transferred an additional 27.4 percent of shares in Deutsche Postbank AG to Deutsche Bank AG. In addition, today, Deutsche Post DHL exercised its put option for its remaining 12.1 percent of Postbank shares. Both transactions were part of a three-stage stock-selling program worked out by both companies in January 2009.
The agreement was implemented in February 2009 when the first tranche of 22.9 percent, or 50 million shares, was transferred. Following the completion of stages two and three, which involved the transfer of a total of 86.4 million Postbank shares, Deutsche Post DHL no longer holds any Postbank shares. The Group received the entire countervalue for its stock package totaling EUR 4.9 billion when the agreement was signed in 2009. As a result, today's formal completion of the agreement will have no effect on the Group's cash flow and liquidity. The final valuation of financial instruments related to the sale of Postbank will be carried out in the first quarter and will be eliminated entirely afterwards.
Close working relationship with Postbank
"We were able to withdraw from the banking business at a very difficult time for the financial industry at attractive conditions," said Frank Appel, the CEO of Deutsche Post DHL. "Since then, we have been able to channel all of our energies into successfully carrying out our mail operations and driving the implementation of our growth strategy in our global logistics business. Under the umbrella of Deutsche Bank, Postbank will be able to continue its positive evolution. Even after the sale, we will continue to maintain a close working relationship with Postbank in our retail-outlet business."
Postbank had belonged to the Deutsche Post Group since 1999. As part of its focus on its core competencies - mail and global logistics - Deutsche Post DHL initiated its gradual withdrawal from the financial-services business in September 2008 with an agreement to sell its Postbank stake to Deutsche Bank. This agreement was once again modified in January 2009 and has now been completely carried out.
The successful retail-outlet partnership between Deutsche Post DHL and Postbank will continue after the divestment. Postbank independently operates about 1,100 former Post retail outlets as Postbank Financial Centers, giving it one of Germany's largest networks of bank branches. On behalf of Deutsche Post, Postbank's branches offer the full range of postal services. Many partner retail outlets of Deutsche Post also offer Postbank's financial services, such as savings and checking accounts.