Germany's KfW investment bank is to sell off another tranche of the shares that it holds in Deutsche Telekom for an estimated value of almost €2.5 billion ($2.7 billion), the state-owned bank announced after the Frankfurt Stock Exchange closed on Monday.
The KfW plans to sell 110 million Telekom shares to institutional investors. Deutsche Telekom shares declined slightly in after-hours trading on the Tradegate platform after the news was announced.
The sale would reduce the German state's stake – held directly and indirectly through the KfW – to 27.8%.
"The KfW and the state will remain the largest shareholders in Deutsche Telekom AG," the bank said. The KfW sold 22.4 million shares in Deutsche Telekom in the second quarter through market operations.
At the end of last year, the German state along with the KfW still held more than 30%. Japan's Softbank held a stake of 4.5% at the time.