Deutsche Lufthansa AG: Deutsche Lufthansa AG confirms advanced talks with the Economic Stabilization Fund on the concrete design of a stabilization package
May 20, 2020 at 07:10 pm
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DGAP-Ad-hoc: Deutsche Lufthansa AG / Key word(s): Financing
Deutsche Lufthansa AG: Deutsche Lufthansa AG confirms advanced talks with the Economic Stabilization Fund on the concrete design of a stabilization package
21-May-2020 / 01:06 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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.
Responsible: Dennis Weber, Head of Investor Relations, Phone +49 69 696 28000
21-May-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Language:
English
Company:
Deutsche Lufthansa AG
Venloer Str. 151-153
50672 Cologne
Germany
Phone:
+49 (0)69 696 28000
Fax:
+49 (0)69 696 90990
E-mail:
investor.relations@dlh.de
Internet:
www.lufthansagroup.com/investor-relations
ISIN:
DE0008232125, DE0008232125
WKN:
823212
Indices:
DAX
Listed:
Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover; Regulated Unofficial Market in Tradegate Exchange
Deutsche Lufthansa AG is a Germany-based aviation company, which provides passenger and cargo air transportation services worldwide. The Company's segments include Passenger Airlines, Logistics, MRO and Catering. The Passenger Airlines segment includes Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines and Eurowings. The Logistics segment includes the airfreight container management specialist Jettainer group, the time:matters Group, which specialises in urgent shipments, the subsidiary Heyworld, which specialises in tailored solutions for the e-commerce sector, CB Customs Broker, the customs and customs clearance specialist, and the Lufthansa Groupâs 50% stake in the cargo airline AeroLogic. The MRO segment, represented by the Lufthansa Technik group, is a global provider of maintenance, repair and overhaul services for civil and commercial aircraft. The Catering segment consists of traditional catering and onboard retail along with food commerce activities.
Deutsche Lufthansa AG: Deutsche Lufthansa AG confirms advanced talks with the Economic Stabilization Fund on the concrete design of a stabilization package