Almost 14 months after joining the company, the German state has started to part with Lufthansa’s shares.

The federal government acquired this at the beginning of the Corona crisis to support the German aviation group.

The Economic Stabilization Fund (WSF) wants to reduce its share in the M-Dax listed group by a maximum of a quarter to 15 percent in the coming weeks, as it announced on Monday in Berlin.

This means that up to 29.9 million Lufthansa shares, which the federal government acquired in summer 2020 for a nominal value of 2.56 euros each, will come onto the market in order to stabilize Lufthansa in the Corona crisis.

Selling at a profit

This means that up to 29.9 million Lufthansa shares, which the federal government acquired in summer 2020 for a nominal value of 2.56 euros each, will come onto the market in order to stabilize Lufthansa in the Corona crisis.

Lufthansa shares are currently being traded for more than 9 euros on the stock exchanges, so that a significant increase in value can be realized for the federal government.

The quarter of the package up for sale is currently valued at around 270 million euros.

Lufthansa shares are currently being traded for more than 9 euros on the stock exchanges, so that the federal government is making a significant plus.

The quarter of the package up for sale is currently valued at around 270 million euros.

The direct participation in the company had amounted to 20 percent of the shares and with a nominal value of 300 million euros was the smaller part of the German state aid of up to 6 billion euros.

In addition, there was a KfW loan that had already been repaid, as well as state aid from Austria, Switzerland and Belgium, so that Lufthansa finally had 9 billion euros at its disposal.

With the sale of the first block of shares, which began on Monday, the WSF loses the opportunity to acquire a blocking minority in the group by converting Silent Participation II.

This was to prevent a hostile takeover in the crisis, for example.

The federal government justified its step with the positive development of the company.

However, it remains a major shareholder and will continue to accompany the stabilization.

 Lufthansa initially did not want to comment on the process. CEO Carsten Spohr had repeatedly emphasized that the state wanted to end as soon as possible. Without the help, Lufthansa would have had to file for bankruptcy in the summer of 2020, according to its chairman Karl-Ludwig Kley.