Germany Assists Lufthansa

Lufthansa - from Lufthansa site

CBJ — Germany has given the equivalent of $10 billion to Lufthansa Airlines as a means to help it survive through the pandemic.

The money for Lufthansa is the biggest corporate rescue by the German federal government during the pandemic. The money provided will see the government take a 20% stake in the airliner and an automatic veto option should a hostile takeover bid occur. The government could increase its stake to 25% in the future based on this agreement.

Lufthansa and the German government have been in protracted talks about how the airliner could be saved from potential insolvency or takeover.

The central government in Berlin has set aside well over $100 billion to use to acquire a stake in companies in jeopardy of going out of business. However, the plan is not to remain part owner of any of these companies for the long-term, but is viewed more as a temporary bailout.  The German government has stated it wants to sell its stake in Lufthansa by the end of 2023.

@CanBizJournal

Recommended
TomaGold hires Evans & Evans to carry out an independent valuation of its assetsBIGG Digital Assets Inc