By Ed Frankl 
 

The German government on Wednesday sold part of its shareholding in Deutsche Lufthansa AG.

The country's economic stabilization fund, known as the WSF, reduced its stake from 14.1% to less than 10%, the country's finance agency said.

At 1330 GMT, Lufthansa climbed 3.3% to EUR6.06 on the news.

"By falling below a 10% stake, we've entered the home straight to end the stabilization measure for Lufthansa," Jutta Doenges, responsible for the WSF at the finance agency, said in a statement.

The WSF pumped 6 billion euros ($6.07 billion) into Lufthansa as it bolstered the business through the pandemic's travel slump, building up a WSF shareholding of initially around 20%.

Proceeds from the sale exceed the amount used to acquire the stake, the WSF said.

The fund plans to sell its remaining shares in the airline by October 2023 at the latest, it added.

 

Stephanie Haxel contributed to this article.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

July 27, 2022 10:09 ET (14:09 GMT)

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