DSV has raised €5bn through a share sale to help fund its €14.3bn purchase of DB Schenker.
The “oversubscribed” offering was made to institutional investors in Denmark and internationally at market price and without pre-emption rights to DSV’s existing shareholders.
“The proceeds from the offering will be used to partly finance the expected acquisition of Schenker AG from Deutsche Bahn,” the company said in an investor update.
When DSV announced last month it had agreed to buy DB Schenker, the company said that it expected to finance the transaction through a combination of equity financing of around €4-5bn via “an accelerated bookbuilding without pre-emption rights for existing shareholders” and debt financing.
BNP Paribas, Danske Bank, HSBC, JP Morgan and Nordea were joint global coordinators and joint bookrunners in the share issue.
Earlier this week, The Deutsche Bahn supervisory board approved the sale of DB Schenker to DSV at an extraordinary meeting.
The federal government has also granted the approval required for the transaction under the Federal Budget Code (BHO).
The sale will create the world’s largest freight forwarder in terms of both air volumes and revenues and is expected to be completed next year once all regulatory approvals have been obtained.
Including the expected interest income until the close of the sale, the total sales value is up to €14.8bn.
Until the closing of the transaction, DSV and Schenker remain two separate companies.
The Danish forwarder also issued a trading update earlier this week. The company now expects EBIT before special items to be in the range of DKr16bn to 17bn, compared with a previous forecast of Dkr15.5bn-17bn.
Third-quarter EBIT is expected to be DKr4.4bn – flat on a year ago.
Deutsche Bahn approves sale of DB Schenker to DSV
