Germany to sell up to a quarter of its Lufthansa stake
BERLIN -Germany plans to sell up to a quarter of its 20%
stake in Lufthansa over the coming weeks, the German finance agency said on
Monday, citing positive developments at the bailed-out airline.
Lufthansa shares fell as much as 4.9% to 8.81 euros in early
trade after the announcement.
The state's 20% stake was acquired for 300 million euros
($353.67 million) as part of a bailout for the German carrier as the company
and the entire aviation sector took a battering from the coronavirus crisis.
Lufthansa had received a 6 billion euro package from
Germany's economic stabilisation fund (WSF), which was set up to help companies
to ride out the pandemic.
The WSF has said it would sell the complete stake, which is
currently worth more than 1 billion euros, before the end of 2023.
Lufthansa plans to issue new shares, probably before the
Sept. 26 parliamentary elections, to help it to return bailout money to
taxpayers.
Shareholders have approved a potential capital increase of
up to 5.5 billion euros.
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