Lufthansa has had an assistance package approved by the German government.

The package provides for stabilisation measures and promises loans of up to €9bn (R171,63bn), according to a press release.

The government will get a 20% stake in the carrier, which it plans to sell by the end of 2023, but it may also increase its stake to 25% plus one share in the event of a takeover attempt of the company.

The government will also have silent participations (silent partnership) of up to €57bn (R1,09trn) in non-voting capital. Part of this could be converted into an additional 5% equity stake, either to protect Lufthansa against a hostile takeover. Lufthansa will separately receive a €3bn (R57,22bn) three-year loan from state-owned development bank KfW, and private banks.

The stabilisation package still requires the final approval of the management board and the supervisory board of the company, as well as the European Commission.

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