© Reuters. FILE PHOTO: A Lufthansa Airbus A320-200 can be seen on the tarmac at Lyon-Saint-Exupery Airport in Colombier-Saugnieu near Lyon, France, March 14, 2019. REUTERS / Emmanuel Foudrot
By Christoph Steitz
FRANKFURT (Reuters) – Lufthansa announced on Sunday that it would carry out a capital increase that is expected to raise 2.14 billion euros (2.51 billion US dollars) to repay part of a government bailout that Germany's leading airline during the coronavirus Received crisis.
Lufthansa announced that the subscription period for the eagerly anticipated rights issue with the issue of around 597.7 million new shares would run from September 22 to October 5.
The airline will use the net proceeds to raise part of the $ 9 billion.
“We have always made it clear that we will only maintain the stabilization package for as long as is necessary,” said CEO Carsten Spohr.
“We are therefore proud that we can now keep our promise and repay the measures faster than originally expected. We can now fully concentrate on the further transformation of the Lufthansa Group, ”he said.
Based on the operating results in July and August, Lufthansa expects positive adjusted earnings before interest and taxes in the third quarter.
Insiders told Reuters earlier this year that Lufthansa was planning a capital increase of around 3 billion euros, but Spohr said the lower pension liability in recent months has reduced the need for fresh capital.
Lufthansa announced that several funds under the management of Blackrock (NYSE 🙂 have concluded a sub-underwriting agreement for a total of 300 million euros as part of the capital increase and have undertaken to exercise their subscription rights in full.
If it participates in the rights issue, the ESF has undertaken to sell its current stake of 15.94% in Lufthansa at the earliest six months after the completion of the share sale, but no later than two years later, Lufthansa announced.
“We remain determined to further examine portfolio measures if the full value can be achieved in order to maximize the Group's value and strategic flexibility,” said Remco Steenbergen, Lufthansa’s CFO.
($ 1 = 0.8529 euros)
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