By Cecilia Butini

 

The German finance agency said Monday that the economic stabilization fund put in place to keep Deutsche Lufthansa AG afloat amid the pandemic is decreasing its shareholding in the company.

The fund, which held a 20% stake in Lufthansa, is set to reduce its participation by up to a quarter, or a 5% stake, beginning on Monday, the finance agency said. The reduction will take place over several weeks.

The decision was made as a result of the success of Lufthansa's measures to face the crisis, the agency said.

The fund negotiated a stabilization package with Lufthansa for up to 6 billion euros ($7.08 billion) in June 2020. In total, Lufthansa received EUR9 billion in state aid to weather the crisis.

 

Write to Cecilia Butini at cecilia.butini@wsj.com

 

(END) Dow Jones Newswires

August 16, 2021 02:52 ET (06:52 GMT)

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