Funding or Financial Matters - KfW Bank aims to make bank through Telekom's share sale.
The KfW bank, a state-owned entity, intends to offload additional Telekom shares and make a billion euros in the process. This was disclosed following the closure of the Frankfurt stock exchange. According to their announcement, 110 million shares of the DAX company will be sold to institutional investors, which, based on the Xetra closing price, is equivalent to almost 2.5 billion euros. Telekom's shares on the Tradegate trading platform dropped slightly after trading hours.
Through this proposed sale, the government's stake in Telekom – both directly and indirectly via KfW – will decrease to 27.8%. "The KfW and the federal government will remain the largest shareholders of Deutsche Telekom AG," the statement added. In the second quarter, KfW had already sold off 22.4 million shares.
As of the end of 2023, the federal government, together with KfW, had approximately 30% of the Telekom shares. Softbank of Japan held a stake of 4.5% at that time.
