According to people familiar with the matter, quoted by Bloomberg on June 2, 2021, the German government might be taking part in Lufthansa’s (LHAB) (LHA) planned €3 billion ($3.7 billion) capital increase to ensure the refinancing of its previously received €9 billion ($11 billion) bailout package.
The new funding will provide enough cash to repay most of a €5.5 billion silent participation still held by the German government. However, the government’s help in Lufthansa’s (LHAB) (LHA) pending capital increase would reportedly let the government limit dilution of its 20% stake in the airline and increase the airline’s chances to raise capital.
At the height of the COVID-19 pandemic, the largest German air carrier agreed with the government on a bailout deal. The German government provided Lufthansa (LHAB) (LHA) with a €9 billion ($11 billion) bailout sum for an exchange of a 20% stake in the airline.