German rail company Deutsche Bahn (DB) has confirmed its supervisory board will develop a plan to sell a minority stake in its international passenger business DB Arriva and logistics subsidiary DB Schenker.
The board plans to pass a final resolution later this year to financially secure the quality and investment campaign in Germany.
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As part of group restructuring, DB Mobility Logistics (DB ML) will be merged with holding company DB.
Board chairman Utz-Hellmuth Felcht said: "If we don’t take action, the group’s debt will increase substantially by 2020. A third-party equity interest limits the level of debt and creates financial scope necessary to continue the quality and investment campaign in Germany."
In a statement, DB said between 2016 and 2020 the company plans to invest €55bn. Of this, 90% will be spent on rail operations in Germany, while €20bn will need to be financed by the group.
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DB’s management board chairman Dr Rüdiger Grube stated: "Our express intention is for DB Arriva and DB Schenker to continue to be fully consolidated in DB’s balance sheet."
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By GlobalDataAs part of restructuring, the DB Group supervisory board also decided to dissolve the two-tiered holding structure, merging DB and DB ML.
