Germany gears up for Commerzbank exit with crisis-era stake sale plan
Removes grammatical error in paragraph 4
Germany holds 16.5% of Commerzbank after 2008 bailout
Commerzbank CFO welcomes news of stake sale plan
Bank's shares fall, had hit 12-year peak in May
By Emma-Victoria Farr and Maria Martinez
FRANKFURT/BERLIN, Sept 4 (Reuters) -Germany will decide shortly how to sell down its Commerzbank CBKG.DE stake, finance ministry sources said, as the lender on Wednesday hailed the plan as a sign its business was back to normal.
The German state holds a 16.5% Commerzbank stake worth about 2.6 billion euros ($2.87 billion) through its bank rescue fund after a bail-out 16 years ago during the financial crisis.
Germany's government, which announced its intention to reduce its holding late on Tuesday, has not said by how much it plans to reduce its stake, nor how it would sell the shares.
The two options are either selling a block of shares or placing shares on the market step by step, two finance ministry sources told Reuters on Wednesday.
A decision on the sale process is expected "in the next few days", they added, as well as another on the timing, which is subject to market conditions.
Commerzbank's chief financial officer and vice-chair, Bettina Orlopp, welcomed the proposal, saying the reduction will not be in one step and the government will remain on its supervisory board.
A government spokesperson said the government was indicating that it was prepared for an exit from Commerzbank, but they could not comment on the size or timing of any stake sale.
Orlopp said there was strong interest given the way the bank has performed.
Commerzbank has undergone a major overhaul since its bailout, exiting businesses and slashing costs to restore profit. It posted its biggest profit in 15 years in 2023 as it benefited from higher interest rates.
Its shares hit a 12-year high earlier this year, but have been under pressure recently as weakness in the German economy weighs on consumers. On Wednesday, they were down 2.4% at 1400 GMT, underperforming other banks .SX7P.
The government is sitting on a loss and may not recoup the full 18.2 billion euros it handed out in the 2008 bailout, when it took a 25% stake in Commerzbank in return.
'OVERHANG RISK'
Any potential anchor investors would need to speak first with Germany's Finance Ministry, Orlopp said, adding at a Handelsblatt event in Frankfurt that Commerzbank would review all interest.
Investment banks will be lining up to advise the government, Orlopp said, adding that there were no talks held before Tuesday's announcement.
Bloomberg, citing sources, reported that the government was targeting an initial sale of 3% to 5% as soon as this month.
Banking sources have told Reuters they expect the government will sell its shares on the market.
"It remains unclear whether the shares could be sold to a financial/strategic buyer, or to the market directly," Citi analysts said in a note sent to clients.
"In the meantime, CBK shares could be subject to overhang risk, except in the scenario of potential interest from a strategic buyer," said Citi, which downgraded its rating on Commerzbank stock to neutral in June.
Commerzbank has in the past been a potential partner for Deutsche Bank DBKGn.DE, Germany's largest bank, with which it held merger talks in 2019.
Reporting by Emma-Victoria Farr and Maria Martinez, Writing by Rachel More and Tommy Reggiori Wilkes, Editing by Madeline Chambers and Alexander Smith
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
