Germany to sell up to a quarter of its Lufthansa stake

[BERLIN]

GERMANY plans to sell up to a quarter of its 20 per cent 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 per cent to 8.81 euros in early trade after the announcement.

The state's 20 per cent stake was acquired for 300 million euros (S$479.6 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 9 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.

REUTERS