Germany to sell a part of its Lufthansa stake

Germany to sell a part of its Lufthansa stake

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.

Sources: Nasdaq.com, reuters.com

The information presented herein is prepared by ae.capex.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Key Way Markets Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.