Lufthansa seeks to increase its capital by 2.1 billion euros



The Lufthansa group will launch a capital increase of 2.1 billion euros which will be used to repay the subsidies granted by the German government during the Covid and to improve its net debt.

Existing shareholders will be offered the possibility of purchasing one new share for each share held at the subscription price of € 3.58, ie a discount of 39% on the theoretical price ex-right.

The capital injection is fully subscribed by a syndicate of 14 banks with subscription to a number of funds and accounts managed by the investment company BlackRock.

The group will use the proceeds to repay a tranche of 1.5 billion euros provided by the Economic Stabilization Fund (ESF) of the Federal Republic of Germany. It says it will also repay an additional € 1 billion from the fund and cancel any amounts not drawn from the fund by the end of 2021. The ESF currently holds 15.94% of the group’s share capital.

Carsten Spohr, CEO of Deutsche Lufthansa AG, said: “The stabilization plan agreed with the ESF has enabled Lufthansa to protect the jobs of more than 100,000 employees. We have always made it clear that we will only keep the stabilization package for as long as is necessary. We are therefore proud to be able to keep our promise and repay the measures more quickly than initially planned. We can now fully focus on further transforming the Lufthansa Group. “

The group expects that the global vaccine rollout and the continued lifting of travel restrictions will allow it to report positive adjusted EBIT in the third quarter. He said the capacity offered by the group’s airlines had returned to more than half of pre-crisis levels, with load factors exceeding 70% in August.


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