Lufthansa – Bund probably sells with positive economy

The federal government wants to sell part of the stake in Lufthansa which it bought as part of the corona relief measures in the coming weeks. “Against the background of positive business developments,” the State Economic Stabilization Fund (FSM) will reduce its share from 20 percent by up to a quarter, the German Finance Agency said. Sales are expected to start on Monday. The announcement, meanwhile, caused Lufthansa shares to fall by a good three percent. Even at that price, however, the federal government would make a profit with the rescue entry into the Corona Crisis.

The WSF had acquired a 20 percent stake as part of a billion dollar campaign to support the struggling airline for 300 million euros and thus became the largest shareholder. On the stock market, the package acquired at a par value of 2.56 euros per share is now worth more than three times that amount. With the partial sale alone, the state could earn around 250 million euros.

The WSF was created to help large companies overcome the corona crisis. He helped Lufthansa on his own with six billion euros. In addition to the package of actions, the federal government granted it silent contributions of 5.7 billion euros, which the airline has only partially used.

Lufthansa shares have been under pressure for some time as the airline announced a capital increase. Lufthansa and its majority shareholder want the airline to become independent from taxpayers again as quickly as possible. Lufthansa boss Carsten Spohr wants to implement the capital increase in September if possible in order to repay part of the financial aid. The WSF left open on Monday the question of whether and how it would participate as a shareholder. Before participating, the federal government would again need the green light from the EU, as this would imply further state aid. Lufthansa had raised the possibility that the federal government could participate without having to spend money again, for example by using the proceeds from the partial sale of the shares.

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