German government intends to reduce Lufthansa stake further -bank

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German government intends to reduce Lufthansa stake further -bank © Reuters. A shut-down first class counter of German air carrier Lufthansa is photographed on the day of the airline’s annual general meeting at the airport in Frankfurt, Germany, May 4, 2021. REUTERS/Kai Pfaffenbach

BERLIN (Reuters) – The German government plans to reduce its stake in Lufthansa acquired during the coronavirus pandemic, a bank commissioned to handle the transaction said on Tuesday.

The state’s economic stabilisation fund wants to offer institutional investors around 74.4 million Lufthansa shares, corresponding to 6.2% of the airline’s share capital, according to the statement by Deutsche Bank (ETR:).

Deutsche Bank and Goldman Sachs (NYSE:) are acting as joint global coordinators and bookrunners for the sale, the statement added.

Lufthansa Group was saved from bankruptcy during the pandemic by Germany, Switzerland, Austria and Belgium with 9 billion euros in June 2020. Germany took a 20% stake in the carrier, which German ministries said would be sold off by October 2023 at the latest.

Lufthansa shares closed down 1.5% at 6.32 euros per share on Tuesday.

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