Coronavirus-stricken German airline group Lufthansa has agreed in principle a 9 billion (US$9.81 billion) rescue deal with Berlin that would see the government climb aboard as a shareholder, DPA reported on Monday, May 25.
With managers and ministers in agreement, Lufthansa’s supervisory board and the government’s economic stabilisation fund (WSF) must now rubber-stamp the
proposal, before shareholders and competition regulator the European Commission are asked for their green lights.
The airline, whose subsidiaries include Austrian and Brussels Airlines, Eurowings, and Swiss, confirmed last week details of the rescue under discussion.
The German government would take a 20% stake in Lufthansa, as well as a convertible bond worth 5% plus one share, allowing it to claim a blocking minority shareholding to shut out hostile takeover attempts.
The package would also include a €3 three-billion (US$3.27 billion) State loan to the airline as well as two government-appointed seats on the supervisory board.
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