Chinese Conglomerate Takes Stake in Deutsche Bank -- Update
February 17 2017 - 10:29AM
Dow Jones News
By Jenny Strasburg
Chinese conglomerate HNA Group holds a 3.04% stake in shares of
Deutsche Bank AG through a European asset manager, according to
securities filings.
HNA Group holds the stake through C-Quadrat Asset Management
(UK) LLP, the U.K. subsidiary of C-Quadrat Investment AG, founded
by Austrian investor Alexander Schütz.
A Frankfurt-based spokesman for HNA Group and C-Quadrat said
Friday that HNA purchased the shares through a special-purpose
vehicle. It wasn't clear how much HNA Group paid for its stake,
which crossed the 3% threshold this week, triggering public
disclosure. The buyer's spokesman, Thomas Katzensteiner, wouldn't
comment on when the shares were purchased or at what price.
At Friday's share price, the 41 million-share stake was worth
about EUR755 million ($805 million). Deutsche Bank shares were down
2.7% in Friday trading as of midafternoon, at EUR18.02. Over the
past year, they have ranged from EUR9.90 to EUR19.95.
The Chinese investors "do not rule out" increasing their stake,
but their intentions are to "stay below 10%" of outstanding
Deutsche Bank shares, Mr. Katzensteiner said.
He added: "They're seeing Deutsche Bank as an attractive
investment in the financial sector. They want to support the bank
and the management."
Mr. Katzensteiner said neither C-Quadrat nor HNA would comment
Friday about Deutsche Bank's strategy. Asked whether either firm
has suggested any changes at the bank or shared opinions with
Deutsche Bank about its businesses or management, he said: "They
trust fully in the current management," and declined further
comment.
A Deutsche Bank spokesman said Friday that the lender "welcomed
in principle any investor with a long-term view."
HNA Group, controlled by Chinese tycoon Chen Feng, owns domestic
assets including airline and shipping firms and hotel chains. The
conglomerate has been expanding globally of late. In October 2016,
HNA bought a 25% stake in Hilton Worldwide Holdings Inc. from
Blackstone Group LP for $6.5 billion.
HNA's Deutsche Bank stake makes it the lender's third-largest
shareholder, behind members of Qatar's royal family and giant U.S.
money manager BlackRock Inc., according to public filings.
The German lender's shares are up 4.4% this year after hitting
multiyear lows in 2016, when investors were shaken by concerns
about legal-settlement costs, flagging profits and a potential move
by the lender to raise capital by selling new shares.
Deutsche Bank executives have said they meet capital
requirements and want to avoid issuing shares.
Write to Jenny Strasburg at jenny.strasburg@wsj.com
(END) Dow Jones Newswires
February 17, 2017 10:14 ET (15:14 GMT)
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