Deutsche Bahn to sell British subsidiary

Deutsche Bahn

Germany’s railway operator, Deutsche Bahn has asked potential suitors of its British unit Arriva to express their interest in the asset by May 3, according to an advertisement published in the Financial Times newspaper on Wednesday.

Financial Times was quoted in a report by Reuters News Agency that Deutsche Bahn said in the ad that it was working with Citi and Deutsche Bank on the divestiture and that it was open to a sale of all of Arriva to one or multiple parties, adding that a flotation is also an option.

The company has come under pressure to plug a funding gap and has said that a sale or listing could help it limit the rise in its debt and give Arriva – which it bought in 2010 – financial leeway for growth.