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China / Business

Qatar royals, HNA to boost stakes in Deutsche Bank

(China Daily) Updated: 2017-03-10 07:26

Frankfurt - Qatar's royal family and China's HNA Group Co, two of Deutsche Bank AG's biggest investors, plan to buy shares in the lender's 8-billion-euro ($8.4 billion) rights offer with a view to increasing their stakes, according to sources.

Sheikh Hamad Bin Jassim Bin Jabr Al Thani, former prime minister of the Gulf state, and the former emir of the country, Sheikh Hamad bin Khalifa Al Thani, are considering boosting their current combined holding of less than 10 percent, the source said, asking not to be identified because the information is private.

Separately, HNA has a long-term goal of increasing its 3.04 percent holding, two people said. In both cases, no final decision has been made on the final size of the investments.

Deutsche Bank Chief Executive John Cryan, who has spent almost two years navigating legal probes, is tapping investors for funds to rebuild capital buffers dented by litigation costs and regulatory requirements.

His latest strategic overhaul, announced on Friday, has drawn some investor criticism because it reverses an earlier plan that would have seen the firm raise capital by selling a consumer-banking unit instead.

Neil Smith, an analyst with Bankhaus Lampe who has a buy recommendation on the stock, said: "The planned participation by some of Deutsche Bank's biggest shareholders, namely the Qatari royal family and the Chinese group HNA, in the lender's capital increase is a vote of confidence. I expect the capital increase to go through smoothly."

Deutsche Bank shares were trading 0.4 percent higher at 9:26 am on Thursday in Frankfurt. The stock has dropped by roughly 8 percent since Bloomberg reported on Friday that the lender was planning a share sale.

Cryan told Bloomberg TV on Monday that one key stakeholder, which he didn't identify, had signaled willingness to participate in the share sale.

Another large shareholder was undecided about the capital increase and would need convincing, a person familiar with the matter said at the time.

A spokesman for Deutsche Bank declined to comment.

A spokesman for HNA declined to comment. Representatives for the Qatari sheikhs were not available for comment at the time of publication.

The Frankfurt-based bank said last month that HNA, a conglomerate led by aviation tycoon Chen Fang, had become its fourth-largest shareholder.

Bloomberg

Qatar royals, HNA to boost stakes in Deutsche Bank

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