German government support fund sells remaining Lufthansa stake

By Rebecca Jeffrey

Boeing 777 freighter with SAF livery. Photo: Lufthansa Cargo

Germany’s Economic Stabilisation Fund (ESF) has withdrawn its interest in Lufthansa after the airline’s operations and income were hit by pandemic measures.

The German Federal Government-owned Federal Republic of Germany – Finance Agency said the German airline has now been stabilised and ESF has sold its remaining stake.

Lufthansa was granted state aid in June 2020. The aid comprised a ‘”silent” participation of €5.7bn and a €300m acquisition of shares, giving the fund a 20% stake in the carrier.

In November, Lufthansa said it repaid or cancelled all remaining stabilisation funds from the German government which the carrier was able to access at the start of the pandemic.

On July 28, the ESF reduced its shareholding to 9.92% through a further partial sale. The finance agency said ESF’s last remaining shareholding was sold to international investors through a block placement.

“The stabilisation of Deutsche Lufthansa AG is successful closed,” said Jutta Dönges, managing director of the finance agency.

“The total proceeds generated for the ESF from the sale of the shareholding in the amount of €1.07bn exceed the amount used to acquire the stake €306m with €760m significantly.

“With this gratifying record the participation of the WSF ends and the company is back in private hands.”

Lufthansa Group repays financial aid from the German government

Share this story

Related Topics

Latest airlines news

Rosy outlook beckons for freighter conversions

By Greg Waldron, FlightGlobal

Freighter conversion suppliers expect a strong e-commerce market to support the switching of passenger jets to cargo use, although capacity…

Read More

Share this story

Magma benefits from demand for long-term freighter deals

By Damian Brett

Freighter operator Magma Aviation last year benefitted from demand for long-term contracts as companies looked to avoid space shortages by…

Read More

Share this story

Psi Air eyes Philippines-US flights

By Rebecca Jeffrey

Philippines-based cargo airline Psi Air has applied for a foreign air carrier permit and exemption from the US Department of…

Read More

Share this story