Germany seeks $458 million from Lufthansa stake post bailout

Germany is looking to raise as much as 458 million euros ($458 million) from the sale of a stake in Deutsche Lufthansa AG, unwinding part of the holding it took to keep the flagship carrier afloat during Covid-19 lockdowns.

The government plans to sell the equivalent of a 6.2% stake in Europe’s largest airline via an accelerated bookbuild to institutional investors, according to a term sheet released Tuesday. The listed price range is 6.09 euros to 6.15 euros, a discount to the closing share price in Frankfurt. 

Lufthansa last November repaid the last of its 9 billion-euro bailout ahead of schedule, enabling the government to pare its stake at a significant profit.

Germany’s richest man may be a willing buyer after saying he wants to buy more shares in Europe’s biggest airline. Klaus-Michael Kuehne is looking to boost his 15.01% stake, according to a filing last week, after investing a chunk of a fortune made in logistics into the carrier.

The latest move comes a day after the airline said it reached an agreement with its pilots that raises pay for cockpit crew and excludes strikes for about a year in return. Europe’s largest airline has been wrestling with a series of labor disputes that exacerbated an already chaotic summer travel season.

Lufthansa shares earlier Tuesday fell 1.5%. The stock is up 2.3% this year, valuing the company at 7.6 billion euros.