Deutsche Lufthansa AG confirms that management is currently in advanced discussions with representatives of the Economic Stabilization Fund (WSF) of the Federal Republic of Germany on the concrete design of a stabilization package.
The concept, which has not yet been finalized, provides for stabilization measures in the amount of up to EUR 9 billion, of which EUR 3 billion is in the form of a KfW loan. In addition, the WSF is to provide a silent participation. By way of a capital increase at the nominal value per share, potentially reduced by a capital cut, excluding the subscription rights of existing shareholders with a corresponding dilution effect, the WSF is also to obtain a stake in shares of Deutsche Lufthansa AG amounting to 20% of the increased share capital. In addition, a convertible bond is to be agreed with the WSF, which can be exchanged for a further 5% plus one share also at the nominal value in the event of a public takeover offer by a third party. The convertible bond may be freely sold at any time without this restriction. The WSF intends to exercise the voting rights associated with the shares as a whole only in exceptional cases such as protection against a takeover.
An Extraordinary General Meeting is to decide on the capital increases. The granting of the silent participation and the granting of the loan are subject to the feasibility of the capital increase.
The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, two seats on the Supervisory Board are to be filled in agreement with the Federal Government.
Deutsche Lufthansa AG is continuing its talks with the WSF with the aim of reaching a conclusion promptly in order to secure the company's solvency in the long term. The stabilization package requires the approval of the WSF Committee as well as the Company’s Executive Board and Supervisory Board. It is also subject to approval by the European Commission.