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Germany to sell a part of its Lufthansa stake

Miguel A. Rodriguez
Miguel A. Rodriguez
16 August 2021
As the pandemic’s impact is starting to wash off, the governments are beginning to withdraw their aid

According to the German finance agency, the country’s government plans to sell up to a quarter of its 20% stake in Germany’s largest aviation group – Lufthansa – over the coming weeks. The overall stake, which is currently worth more than €1 billion, would be sold entirely by the end of 2023.

The positive developments at the bailed-out airline led to the government’s decision. The state paid €300 million ($353.67 million) as part of a bailout for Lufthansa, as not only the company but the entire aviation sector took a battering from the COVID-19-induced crisis. Lufthansa received €9 billion in state-backed aid in 2020.

However, the company plans to issue new shares, probably before September 26 parliamentary elections, to return bailout money to taxpayers.

Upon the news, Lufthansa share price was trading more than 3% lower at €8.94 apiece.



This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.