Rail

April 29, 2019
 

Arriva bids are lower than expected

Potential buyers for Deutsche Bahn’s UK-based unit DB Arriva have not met the German railway’s price expectations, tabling indicative offers of about €3 billion ($3.34 billion).

DB Arriva was expected to be valued at between €4 billion and €4.5 billion.

So far, only financial investors are said to have expressed interest, including private equity firms Apollo Global Management, I Squared Capital and Advent International.

Deutsche Bahn acquired Arriva in April 2010 for a cash offer of 775p per share, valuing the group at about £1.5 billion (1.9 billion).

In 2018, the DB Arriva unit, which includes the group’s bus and rail transport activities outside Germany, reported turnover of €5.44 billion.