The owner was of the view that sale of Arriva would bring plenty of financial opportunities which are conducive for growth.
Arriva, the UK based multinational transport organization, would be put up for sale by its owner, Deutsche Bahn. Arriva is known for running rail franchises that include Northern and London Overground and buses around UK.
The German state rail operator, Deutsche Bahn, has revitalized plans for a complete sale of Arriva or converting the private company into public by issuance of shares. Arriva is reputed for its bus and rail services across Europe and was obtained by the current owner in 2010.
The German company was reported to confirm that the firm’s supervisory board located in Berlin had informed the managers to scout for choices for the sale of Arriva before the financial results of the firm are going to be declared.
According to The Times Deutsche Bahn will search for potential purchasers and consider the possibilities of an Initial Public Offering (IPO). The notion of a complete sell-off was put on the table in back in 2016 but got laid aside when Britain voted to opt out of EU.
The German owner had been scouting for ways to put a check on its own increasing mountain of debts. However, the group succeeded in earning a profit in 2017. In spite of this, an investment of €1bn (£850 million) for the latest high-speed trains last autumn escalated Deutsche Bahn’s debt figure to nearly €20bn.
Sources close to the matter report that Germany’s network of railways has been troubled by a variety of problems including ageing trains, lack of capacity etc. and the organization is looking to raise funds for upgrading the infrastructure.
Last year, Arriva transport services company succeeded in achieving a turnover of €5.44 billion. The owner was of the view that sale of Arriva would bring plenty of financial opportunities which are conducive for growth.