Lufthansa launches $ 2.5 billion capital increase

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A Lufthansa Airbus A320-200 aircraft is seen on the tarmac at Lyon-Saint-Exupéry airport in Colombier-Saugnieu near Lyon, France, March 14, 2019. REUTERS / Emmanuel Foudrot

FRANKFURT, Sept. 19 (Reuters) – Lufthansa (LHAG.DE) announced on Sunday that it will launch a capital increase that it says will generate proceeds of € 2.14 billion ($ 2.51 billion) for repay part of a state bailout received by Germany’s leading airline. during the coronavirus crisis.

The subscription period for the rights issue, during which approximately 597.7 million new shares without par value will be issued, will run from September 22 to October 5.

Lufthansa will use the net proceeds to repay part of the € 9 billion government bailout received last year, which led the Economic Stabilization Fund to take a 15.94% stake in the group.

“We have always made it clear that we will only keep the stabilization package for as long as is necessary,” said Managing Director Carsten Spohr.

“We are therefore proud to be able to keep our promise and repay the measures faster than expected. We can now fully focus on the further transformation of the Lufthansa Group, ”he said.

A number of funds managed by Blackrock (BLK.N) have entered into a subscription agreement for a total amount of 300 million euros and have committed to fully exercise their subscription rights, Lufthansa said.

($ 1 = 0.8529 euros)

Reporting by Christoph Steitz; Editing by Edmund Blair

Our Standards: Thomson Reuters Trust Principles.

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