At today's Extraordinary General Meeting, the shareholders of Deutsche Lufthansa AG approved the Federal Government's stabilisation package for Lufthansa.
Federal Minister for Economic Affairs and Energy Peter Altmaier said:
"Today is a good day for the more than one hundred thousand employees of Lufthansa, for Lufthansa's future viability and also for Germany as a business location and our position on the world markets.
Both the shareholders and the European Commission today gave the green light for our stabilisation package for Lufthansa. This has been a good and responsible decision by all parties involved, which will help safeguard jobs and locations. This deserves gratitude and recognition and shows that the social market economy works!
"Lufthansa is a healthy company with a long tradition, which has been put in financial distress by the coronavirus pandemic. Governments are not the better entrepreneurs. That is why the Federal Government will not interfere in the company's operative business. The Federal Government’s involvement will only be temporary and will not take a day longer than necessary. However, we will safeguard the interests of the taxpayers by banning dividend payments and by issuing guidelines on management remuneration. And we have secured the necessary rights to be able to ensure that the state aid remains in the company and benefits the employees.
The Federal Government's stabilisation package includes the following measures:
- A total of €9 billion to finance stabilisation measures; of which
- €3 billion will be provided through KfW syndicate financing and €600 million by private banks;
- The Economic Stabilisation Fund (German abbreviation: WSF) acquires a Silent Partnership I to the amount of approx. €4.7 billion, which can be recognised as equity under IFRS;
- The WSF also acquires a 20% stake in Lufthansa with limited voting rights for approximately €0.3 billion by way of a capital increase.
- A further Silent Participation II of around €1 billion, which can be converted into shares (at least a further 5 per cent) under certain conditions (takeover/non-payment of the coupon by DLH);
- The Federal Government will be represented on Lufthansa’s Supervisory Board through two mandates to be exercised by independent experts.
Lufthansa commits itself to pursuing sustainability goals including the renewal of its fleet. Extensive restrictions on the remuneration of the Group Executive Board, the executive boards of Group companies and management are envisaged.
The Economic Stabilisation Fund Committee was established on the basis of the Economic Stabilisation Fund Act. The fund serves to stabilise companies for which any threat to survival would have a significant impact on the economy or the labour market. The Economic Stabilisation Fund Committee includes representatives from the following ministries: the Federal Ministry of Finance, Federal Ministry for Economic Affairs and Energy, the Federal Chancellery, the Federal Ministry of Transport, the Federal Ministry of Labour and the Federal Ministry of Justice.
The video and audio files on today's press statement are available on the website of the Federal Ministry for Economic Affairs and Energy: