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February 9, 2022

Cerberus to further cut stake in Deutsche Bank

American private equity firm Cerberus Capital Management is moving to further reduce its holdings in the Deutsche Bank, reported Bloomberg News.

The firm is now offloading 37% of its remaining stake in the Germany-based bank after selling about 21 million shares last month.

The offering is estimated to be worth approximately $242m (€212) with each share expected to be priced at €14.15.

Following the sale, the firm will hold 26 million shares, or 1.3% stake in Deutsche Bank.

Cerberus acquired a 3% stake in German lender in 2017, becoming the fourth-largest shareholder in Deutsche Bank, after China’s HNA Group, Qatar’s royal family and BlackRock.

The firm actively participated in the bank’s overhaul under CEO Christian Sewing and backed the German government’s move to combine it with domestic rival Commerzbank, in which it purchased a 5% stake in 2017.

The firm has hired Morgan Stanley as the exclusive bookrunner on the sale.

According to the terms seen by the news agency, the underwriters had attracted sufficient investor demand to cover the sale within minutes of opening the book.

Recent developments at Deutsche Bank

Deutsche Bank posted the fifth consecutive quarter of profit in Q3 2021, despite a slide in revenues at its investment banking unit.

The bank reported a net income of €194m ($225m) for the three months to September, up 7% from €182 in the year ago period.

In August last year, a report by WSJ said that DWS, the asset management arm of Deutsche, is being probed by US authorities over sustainability claims.

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