Photo: Kai Pfaffenbach / Reuters
The German authorities decided to save the largest one in Europe, Lufthansa. Agreement concluded with the state economic stabilization Fund. About it reports Reuters, citing a company statement.
According to plan, the German government will buy a 20 percent stake in the airline, these conditions will be allocated a support package worth 9 billion euros. Shares will be purchased at € 2.56 per share, approximately 300 million euros. The authorities also reserve the right to invest in a part of the company to 25 percent plus one share, while other shareholders will attempt to buy a controlling stake. Now the deal must be approved by the European Commission.
Negotiations with the German authorities on support of Lufthansa has been a few weeks. The airline is looking for a way to survive a potential prolonged sleep in the air, provoked by the pandemic coronavirus. Talks delayed due to the fact that the parties are unable to agree on what powers will the government get in exchange for help.
Earlier, Lufthansa said that because COVID-19 the company faced its greatest challenges in its history. “We are losing about a million euros per hour, every day, week after week. And simply will not be able to survive this crisis without state support,” said Lufthansa CEO Carsten Dispute.
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