German state rail operator Deutsche Bahn said on Tuesday it had launched a sales process for its logistics arm DB Schenker, which banking sources have said could be worth as much as 20 billion euros ($21.84 billion).
“The DB Group has issued an official announcement today laying out an open and non-discriminatory process for the sale of the shares,” the company said in a statement. “The condition for a sale is that it must have apparent economic advantages for Deutsche Bahn in all respects.”
Possible investors will need to express interest in the next few weeks, company sources said.
An initial public offering has not been ruled out but is considered improbable, company sources said. The complete sale to a rival or investor would be favoured, they added.
Banking sources in September valued Schenker at between 12 billion euros and 20 billion euros, but said calculations would be influenced by the state of the global economy and the impact from the war in Ukraine and the ensuing energy crisis.
Logistics companies such as Deutsche Post and financial investors are considered possible buyers.
Company documents seen by Reuters this month showed operating profit at Schenker will come in at just over 1 billion euros this year, down from 1.8 billion euros in 2022.
“A sale would significantly accelerate Deutsche Bahn’s focus on its core business,” the company said, adding that it would use a large part of the proceeds to reduce its debt.