WSF to sell entire 20% stake in Lufthansa by 2023

On Monday, a German finance agency said, Berlin plans on selling up to a quarter of its 20% stake in Lufthansa over the coming weeks citing positive developments at the bailed-out airline.

With the news reaching the market, Lufthansa’s shares fell by 4.9% to 8.81 euros in early trade.

The German state acquired a 20% stake in the airlines following a $353.67 million (300 million euros) bailout package with the aviation sector taking 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 now said it would sell the complete stake, 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.

The shareholders of the airlines have approved a potential capital increase of up to 5.5 billion euros.

($1 = 0.8482 euros)

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