Chinese Conglomerate Takes Stake in Deutsche Bank -- 2nd Update
February 17 2017 - 3:10PM
Dow Jones News
By Jenny Strasburg
Chinese conglomerate HNA Group holds a 3.04% stake in 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 the investors said Friday that
HNA purchased the shares through a special-purpose vehicle managed
by C-Quadrat. 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 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.
C-Quadrat holds the voting rights for HNA in its Deutsche Bank
stake, Mr. Katzensteiner said. 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."
In a separate statement issued through a different spokesman,
HNA said its Deutsche Bank holding is passive, and it wouldn't
comment on whether it might increase its stake. The statement
called any characterizations of its intentions "purely
speculative."
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, Mr. Katzensteiner
said: "They trust fully in the current management."
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 agreed to buy 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
to raise capital by selling new stock.
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 14:55 ET (19:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Deutsche Bank Aktiengese... (NYSE:DB)
Historical Stock Chart
From Apr 2023 to Apr 2024