Exclusive Deutsche Bahn Schenker Logistics Business For Sale – Sources

Deutsche Bahn’s logo is seen on a train at Cologne’s main railway station, during a nationwide rail workers’ strike in Cologne, Germany, Aug. 23, 2021. REUTERS/Thilo Schmuelgen

BERLIN/FRANKFURT, Sept 8 (Reuters) – The German government has agreed in principle to Deutsche Bahn ( DBN.UL ) to sell rail operator Schenker Logistics, government and company sources told Reuters on Thursday.

The state’s Deutsche Bahn supervisory board will approve the sale as soon as possible, possibly this year, the sources said.

Banking sources put the value of Schenker at 12 to 20 billion euros ($19.97 billion), although valuation calculations will be influenced by the state of the global economy and the impact of the war in Ukraine and the ongoing energy crisis.

A separate source familiar with the process said banks may receive an invitation to work on the December sales process before the pre-market in 2023.

Both an outright sale and an initial public offering are options, the sources said, adding that there is no time pressure and a sale by 2024 is also possible.

The Transport Ministry and Deutsche Bahn declined to comment.

Schenker’s sale was timely following last year’s transition to a German coalition government led by Chancellor Olaf Scholz’s Social Democrats (SPD).

The Free Democrats (FDP) and the Greens, both small coalition partners, support Deutsche Bahn’s focus on passenger and freight transport in Germany.

Schenker, based in Essen, has 75,000 employees worldwide and accounts for a third of Deutsche Bahn’s revenue.

In the year In the first half of 2022, the business recorded a profit of approximately 1.2 billion euros, bringing the entire company to a profit.

($1 = 1.0013 EUR)

Writing by Markus Waket in Berlin and Emma-Victoria Farr in Frankfurt, by Madeleine Chambers; Editing by Matthias Williams and Jane Merriman

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