© Associated Press
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Germany will sell up to a quarter of its 20% state stake in Lufthansa in the coming weeks, the German financial agency said on Monday, citing positive trends in the airline’s recovery.
Shares of Lufthansa fell 4.9% to 8.81 euros at the start of trading after the announcement, according to Reuters.
The state’s 20% stake was acquired by the state for 300m euros as part of a rescue program for the German carrier after air traffic stopped at the start of the coronavirus pandemic. The goal was to save thousands of jobs when someone tried to buy Lufthansa while the company was experiencing financial difficulties.
The airline received a 6 billion-euro package from the German Economic Stabilization Fund (WSF), which was set up to help businesses overcome the pandemic. The fund announced that by the end of 2023, it will sell the entire state share, which is currently worth more than 1 billion euros.
Lufthansa plans to issue new shares, presumably ahead of the September 26 parliamentary elections, to help it recoup the bailout funds. Shareholders have approved a potential capital increase to 5.5 billion euros, according to Reuters.
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