Germany Planning to Sell its Share in Lufthansa

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, Reuters reports.

The state's 20% stake was acquired for 300 million euros 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 stabilization 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 September 26 parliamentary elections, to help it to return bailout money to taxpayers, Reuters adds.

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

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Germany economic stabilization fund

sale of share in Lufthansa

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