German government support fund sells remaining Lufthansa stake
14 / 09 / 2022
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Germany’s Economic Stabilisation Fund (ESF) has withdrawn its interest in Lufthansa after the airline’s operations and income were hit by pandemic measures.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.”