FRANKFURT - Germany’s flag carrier Lufthansa has been granted a €9 billion government bailout package, the country’s largest corporate rescue since the beginning of the coronavirus (COVID-19) pandemic.
As reported by Reuters, following the bailout the German government will own a 20% stake in the airline for €300 million (€2.56 per share) as well as a veto in the event of a takeover bid.
“The support that we’re preparing here is for a limited period,” German Vice Chancellor and Finance Minister Olaf Scholz said on Monday (25/5).
“When the company is fit again, the state will sell its stake and hopefully...with a small profit that puts us into a position to finance the many, many requirements which we have to meet now, not only at this company.”
The government, Mr Scholz added, plans to offload its stake in Lufthansa by the end of 2023. In total, it has budgeted €100 billion to rescue companies affected by the COVID-19 crisis by acquiring stakes. (MS)