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Jun 28, 2020 at 7:00 AMRelief for Lufthansa Cargo. The shareholders of the parent company Deutsche Lufthansa AG have opted for the rescue measures. 98 percent of the attending capital voted in favor of the rescue package. The extraordinary general meeting was followed digitally by around 30,000 shareholders.
(Frankfurt) The shareholders of Deutsche Lufthansa AG today voted in favor of the acceptance of the capital measures and the participation of the Economic Stabilization Fund (WSF) of the Federal Republic of Germany in Deutsche Lufthansa AG. The corresponding proposal received the required majority at yesterday’s extraordinary general meeting of the company.
Stabilization Measures of Up to 9 Billion Euros
The package includes stabilization measures and loans of up to 9 billion euros. The WSF will make silent contributions totaling up to 5.7 billion euros to the assets of Deutsche Lufthansa AG. Additionally, it will establish a 20 percent stake in the share capital of Deutsche Lufthansa AG through a capital increase. This capital increase was approved at today’s general meeting. The shareholders also voted for the granting of two conversion rights for parts of the silent contributions. These conversion rights are intended to secure the federal government against a takeover of Lufthansa and additionally secure the interest payments for the silent contribution. Both conversion rights can be converted into an additional five percent of the company’s share capital upon the occurrence of these conditions. The package is complemented by a loan of up to 3 billion euros with the participation of KfW and private banks.
Carsten Spohr, CEO of Deutsche Lufthansa AG, says: “The decision of our shareholders secures Lufthansa a perspective for a successful future. On behalf of our 138,000 employees, I thank the German government and the governments of our other home countries for their willingness to stabilize us. We Lufthansa employees are aware of our responsibility to repay the up to 9 billion as quickly as possible to the taxpayers.”
Sustainable Liquidity Secured
Through the resolution of the general meeting, the liquidity of the company is sustainably secured. The companies of the Lufthansa Group are working hard to ramp up their business activities again. The flight schedules of the airlines will be further expanded in the coming weeks. At the beginning of next week, the flight schedule for the upcoming weeks will be published. It aims to include 90 percent of all originally planned short-haul destinations and 70 percent of all long-haul destinations back into the program by September.
Around 30,000 shareholders followed the extraordinary general meeting. A total of 39.0 percent of the share capital was represented. Of this, 98 percent of the attending capital voted in favor of the acceptance of the company’s resolution proposal. This clearly exceeded the necessary two-thirds majority for acceptance.
Before the start of the general meeting, the European Commission had already approved the stabilization package. A decision on the approval of the stabilization measures in the other home markets of the Lufthansa Group will be made shortly.
Photo: © Lufthansa
