FRANKFURT (Reuters) -Lufthansa said on Sunday it would launch a capital increase that it expects will result in proceeds of 2.14 billion euros ($2.51 billion) to pay back part of a state bailout Germany’s top airline received during the coronavirus crisis.
The subscription period of the right issue, in which about 597.7 million new no-par value shares will be issued, will run from Sept. 22 to Oct. 5.
Lufthansa will use the net proceeds to repay a chunk of the 9 billion euro government bailout received last year, which resulted in the Economic Stabilisation Fund taking a 15.94% 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.
A number of funds under the management of Blackrock have entered into a sub-underwriting agreement for a total of 300 million euros and have committed to fully exercise their subscription rights, Lufthansa said.
($1 = 0.8529 euros)
(Reporting by Christoph Steitz; Editing by Edmund Blair)
