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LONDON/FRANKFURT, Oct 6 (Reuters) - German airline Lufthansa
received strong investor backing for a 2.14 billion
euro ($2.47 billion) rights issue, providing some encouragement
for travel companies looking to weather the after effects of the
COVID-19 crisis.
The company said on Wednesday that its rights issue was
98.36% subscribed by investors and that it would place the
remaining shares in the open market shortly.
The cash will be used to repay a chunk of the 9 billion euro
($10.38 billion) government bailout it received last year to
stay afloat throughout the COVID pandemic, which resulted in the
Economic Stabilisation Fund (ESF) taking a stake in the group.
Lufthansa is one of several airlines and travel companies
that have raised cash or are planning to raise funds to get
through the toughest period for the sector in two decades.
Britain's easyJet recently completed a 1.2 billion
pound ($1.63 billion) rights issue, while tourism group TUI
is planning a 1.1 billion euro rights issue in coming
weeks and Air France is believed to be considering its options.
A solid deal for Lufthansa will provide some encouragement
for the others.
($1 = 0.7378 pounds)
($1 = 0.8672 euros)
(Reporting by Abhinav Ramnarayan and Klaus Lauer, editing by
Louise Heavens)
