Deutsche Post buy majority shares in Postbank

Deutsche Post own 99.3% of all shares the lender offered to raise 1 billion euros of new capital.

Deutsche Post AG spent about 993m euros (USD 1.27bn).

Deutsche Post bought 54.4 million shares for 18.25 euros apiece. That’s 99.3% of all shares the lender offered to raise 1 billion euros of new capital. The stock purchase will boost Deutsche Post’s holding in the bank to about 62% from 50%.

Postbank said Oct. 27 it would issue the new stock to shore up capital after it reported its first quarterly loss in more than a decade. Deutsche Post agreed at the time to buy at least half the new shares and underwrite the rest.

Deutsche Bank AG, Germany’s biggest bank by assets, agreed in September to buy almost 30% of Postbank from Deutsche Post for 2.79bn euros and has an option to raise the stake.