Lufthansa wants to organize a total of 2,1 billion euros as part of a capital increase. The board of directors passed the relevant resolution on Sunday with the approval of the supervisory board.

The company's share capital of currently 1.530.221.624,32 euros, divided into 597.742.822 shares, is to be increased by issuing 597.742.822 new no-par value registered shares in the company. 

The expected gross issue proceeds will amount to EUR 2.140 million. The subscription price of EUR 3,58 per new share corresponds to a discount of 39,3% on the TERP (theoretical ex-rights price). The subscription ratio is 1: 1. The new shares are expected to be offered to shareholders during the subscription period from September 22, 2021 to October 5, 2021. Trading in subscription rights is expected to begin on September 22, 2021 and end on September 30, 2021.

The capital increase is fully guaranteed by a consortium of 14 banks. In addition, several mutual funds managed by BlackRock, Inc. have entered into a sub-underwriting agreement for a total of EUR 300 million and have undertaken to exercise their subscription rights in full. All members of the company's management board have also agreed to participate in the capital increase and to fully exercise subscription rights for the shares held in each case.

The capital increase serves to strengthen the Group's equity base. The company will use the net proceeds to repay Silent Contribution I from the Economic Stabilization Fund of the Federal Republic of Germany (WSF) in the amount of EUR 1,5 billion. The company also intends to repay the silent participation II in the amount of EUR 1 billion by the end of 2021 and to terminate the unused part of the silent participation I by the end of 2021.

The WSF, which currently holds 15,94 percent of the company's share capital, has undertaken to sell its equity stake in the company at the earliest six months after the capital increase has been completed, if the WSF participates in the capital increase. In this case, the sale must be completed no later than 24 months after the capital increase has been completed, provided that the company repays the silent participations I and II as planned.