Deutsche Bank seeks €8b via share sale

New Straits Times - - Business -

FRANK­FURT: Deutsche Bank AG said it will raise €8 bil­lion (RM38.16 bil­lion) by sell­ing stock at a 35 per cent dis­count to last week’s clos­ing price as Ger­many’s largest lender seeks to shore up its fi­nances and boost growth.

The com­pany would is­sue 687.5 mil­lion new shares at €11.65 apiece, it said in a state­ment on Sun­day, in-line with the firm’s March 5 an­nounce­ment on the planned sale.

The of­fer com­pares with the stock’s clos­ing price of €17.86 on Fri­day, and is al­most 41 per cent lower than where the stock traded when Bloomberg first re­ported that the bank was weigh­ing a cap­i­tal rais­ing.

Ex­ist­ing in­vestors will be able to ac­quire one new share for each two they now hold.

The sale, which will run from to­day through April 4, will be the fourth cap­i­tal in­fu­sion for Deutsche Bank since 2010.

Chief ex­ec­u­tive of­fi­cer John Cryan, who had pre­vi­ously said he didn’t want to tap share­hold­ers, re­versed course this month af­ter the shares al­most dou­bled from their Septem­ber low and Deutsche Bank was un­able to find a buyer for a con­sumer bank­ing unit. Bloomberg

BLOOMBERG PIC

Deutsche Bank AG will raise €8 bil­lion by is­su­ing new shares at €11.65 apiece, which is a 35 per cent dis­count to last week’s clos­ing price.

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