German is intending to sell up to 25% of its stake in the country’s largest airline Lufthansa AG (ETR: LHA) following positive development by the airline which the government bailed out when it was going through harsh financial times due to the coronavirus pandemic.
This announcement was first made on the German finance agency, moments after which the company’s stock plunged by nearly 5% to 8.81 euros.
The government acquire 20% stake in the company for $353.67 million (300 million euros) as part of the airline’s bailout last year when the aviation industry across the world was taking the heat of the pandemic since travelling reduced significantly courtesy of the pandemic.
The German government made a 6 billion euro injection in Lufthansa from its economic stabilization fund (WSF) which it had set aside to cushion companies which had been greatly affected by the pandemic.
Germany said that it will be selling its entire stake in the airline which is currently worth over $1 billion euros by the end of 2023.