According to the financial services provider, it will offer Postbank shareholders between â¬24 and â¬25 a share with a final minimum price due to be set by Germanyâs Federal Financial Supervisory Authority within a week.
Deutsche Bank currently owns 29.95 per cent of the total shares available in Postbank, which is the largest retail bank in Germany.
The financial institution is planning on issuing 308.6 million common shares through public offerings in both Germany and the US.
Josef Ackermann, chairman of the Management Board and the Group Executive Committee of Deutsche Bank, said: âThrough this capital increase, Deutsche Bank intends to secure the equity capital required for a planned consolidation of Postbank.
âAs a result, we can expand our strong position in our home market, take a leading position in the European retail banking business and significantly enhance Deutsche Bankâs revenue mix.â
Deutsche Bank was recently ranked as top in Risk Magazineâs derivatives-based Risk Interdealer Rankings survey for 2010.
By Jim Ottewill