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.
Sources: Nasdaq.com, reuters.com