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German State to Sell Up to a Quarter of Its Stake in Lufthansa — Update

By Cecilia Butini and Olivia Bugault

 

Germany will sell up to a 5% stake in Deutsche Lufthansa AG after acquiring a 20% share in the German carrier last year as part of a broader state aid package aimed at helping the airline weather the effects of the Covid-19 pandemic.

The German finance agency said Monday that the reduction of up to a quarter of the government's stake in Lufthansa--which it had acquired through its economic stabilization fund--will start today and will take place over several weeks.

The decision was made as a result of the success of Lufthansa's measures to face the crisis, the agency said.

Germany's economic stabilization fund was created last year in order to support companies that were hit by the pandemic. The fund then bought a 20% stake in Lufthansa for roughly 300 million euros ($353.9 million). It previously said that it would sell its entire stake in the company by the end of 2023.

Lufthansa received a total of EUR9 billion in state-backed aid last year when airlines saw the majority of their fleet grounded because of the pandemic and needed cash to survive the crisis.

Shares at 0931 GMT were down 3.2% at EUR8.96.

 

Write to Cecilia Butini at cecilia.butini@wsj.com and to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

August 16, 2021 06:14 ET (10:14 GMT)

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