Categories: BusinessEconomyWorld

Germany is considering selling up to a quarter of its Lufthansa stock

The German finance ministry said on Monday that it expects to sell up to a quarter of its 20% interest in Lufthansa (LHAG.DE) in the next weeks, noting favorable progress at the bailed-out airline.

Following the announcement, Lufthansa shares fell as much as 4.9 % to 8.81 euros in early trading.

The state bought a 20% interest in the German carrier for 300 million euros ($353.67 million) as part of a rescue package for the company, which was hit hard by the coronavirus crisis, as was the entire aviation sector.

Lufthansa had received a 6 billion euro package from Germany’s economic stabilization fund (WSF), which had been set up to help businesses survive the pandemic.

The WSF has stated that it intends to sell the entire stake, which is now worth more than a billion euros, by the end of 2023.

To help it return bailout money to taxpayers, Lufthansa aims to issue new shares, most likely before the September 26 legislative elections.

Shareholders have approved a potential capital increase of up to 5.5 billion euros.

(1 $ = 0.8482 euros)

Source: Reuters

World Economic Magazine

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