
Lufthansa announced on Sunday, September 19, it would launch a capital increase that was expected to raise €2.14 billion (US$2.51 billion) to pay back part of a state bailout Germany’s top airline received during the coronavirus crisis.
The subscription period for the widely-expected rights issue, involving the issue of about 597.7 million new shares, would run from September 22 to October 5, Lufthansa stated.
The airline will use the net proceeds to repay a chunk of the €9 billion government bailout it received last year to stay afloat throughout the COVID pandemic, which resulted in the Economic Stabilisation Fund taking a stake in the group.
“We have always made it clear that we will only retain the stabilisation package for as long as it is necessary,” Chief Executive Carsten Spohr said.
“We are therefore proud that we can now deliver on our promise and repay the measures faster than originally expected. We can now fully focus on the further transformation of the Lufthansa Group,” he said.
Lufthansa stated that based on its operating performance in July and August it expected to post positive adjusted earnings before interest and tax in the third quarter.
Insiders told Reuters this year that Lufthansa was planning a capital increase of roughly €3 billion, but Spohr has said lower pension liability had reduced the need for fresh capital in the past months.
A number of funds under the management of Blackrock have entered into a sub-underwriting agreement for a total of €300 million as part of the capital increase and have committed to fully exercise their subscription rights, Lufthansa stated.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
On Witness Stand, Google CEO Challenges DOJ’s Proposed Remedies In Search Monopoly Case
Apr 30, 2025 by
CPI
Latham & Watkins Expands German Antitrust Practice
Apr 30, 2025 by
CPI
DoorDash, Grubhub, and Uber Eats Settle With NYC Over Cap Fees
Apr 30, 2025 by
CPI
Pork Giants Push to Overturn Price-Fixing Suit Citing Clerk’s Alleged Conflicts
Apr 30, 2025 by
CPI
Novartis to Acquire Regulus Therapeutics in $1.7 Billion Deal
Apr 30, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Mergers in Digital Markets
Apr 21, 2025 by
CPI
Catching a Killer? Six “Genetic Markers” to Assess Nascent Competitor Acquisitions
Apr 21, 2025 by
John Taladay & Christine Ryu-Naya
Digital Decoded: Is There More Scope for Digital Mergers In 2025?
Apr 21, 2025 by
Colin Raftery, Michele Davis, Sarah Jensen & Martin Dickson
AI In the Mix – An Ever-Evolving Approach to Jurisdiction Over Digital Mergers in Europe
Apr 21, 2025 by
Ingrid Vandenborre & Ketevan Zukakishvili
Antitrust Enforcement Errors Due to a Failure to Understand Organizational Capabilities and Dynamic Competition
Apr 21, 2025 by
Magdalena Kuyterink & David J. Teece