Germany has sold the entirety of its 9.92% stake in Lufthansa for a value of 760 million euros. This follows the government’s announcement on Tuesday of the sale of a 6.2% holding in the national carrier.
Through its Economic Stabilization Fund or WSF, Germany first purchased Lufthansa shares as a means of floating the airline during the height of the COVID-19 pandemic when flights remained grounded.
“The total proceeds of 1.07 billion euros generated for the WSF from the sale of its stake significantly exceed the 306 million euros invested to acquire it,” WSF managing director Jutta Doenges confirmed. As a result, ownership of the company is once again in the hands of private investors.
Prior to the government selling its remaining stake in the company, Lufthansa repaid the remainder of its 9 billion-euro bailout ahead of schedule, thereby enabling the government to sell its stocks for a significant profit.
Shortly before the sale, Lufthansa reached an agreement to give a pay raise to pilots following a series of drawn-out labor disputes in the midst of the summer peak travel season.
Lufthansa’s stock lost 2% on Wednesday morning.