State sells 110 million Telekom shares | EUROtoday

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Status: 04.06.2024 00:55

The federal authorities is decreasing its stake in Telekom. The growth financial institution KfW introduced the sale of a block of shares value billions. According to the Ministry of Finance, the proceeds will go to Deutsche Bahn.

The federal growth financial institution KfW is promoting one other block of shares within the Telekom Group. 110 million shares within the DAX group are to be bought to institutional traders, the financial institution introduced after the inventory market closed. Based on the Xetra closing value, the proceeds are round 2.5 billion euros.

The Federal Ministry of Finance introduced that the federal authorities is thus persevering with its accountable privatization coverage. “In view of the federal government's continued interest, the federal government and KfW will remain jointly the central shareholder of Deutsche Telekom AG and will maintain the necessary level of participation.”

With the deliberate sale, the federal authorities's share in Telekom is anticipated to fall to 27.8 %, straight and not directly by way of KfW. In the second quarter, KfW had already bought 22.4 million shares in the marketplace.

Capital flows into Deutsche Bahn

According to the Ministry of Finance, the proceeds will profit the railway. “The federal government will use the net proceeds from the transaction to strengthen the equity of Deutsche Bahn AG and to expand the railway infrastructure in Germany in a forward-looking manner,” the Ministry of Finance introduced. No sum was specified.

There was already hypothesis in December about how the federal authorities may generate the cash for the required modernization. There is a funding hole within the plans as a result of, following a call by the Federal Constitutional Court, there are not any funds from the Climate and Transformation Fund for the railway.