German Lufthansa shareholders approved a 9 billion euro ($ 10 billion) government bailout package, to protect the company from collapse due to the fallout from the Corona pandemic.
According to Reuters, the plan, which won the approval of 98 percent of the company's shareholders who cast their votes in an online poll, includes Berlin obtaining a 20 percent stake in the plan. Lufthansa has two seats on the board of directors.
The shares of the company, which employs about 138,000 people, closed 7.1 percent higher, after strong gains earlier after major shareholder Heinz Hermann Thiel retreated from his objections to The deal.
Earlier on Thursday, European Union regulators agreed to recapitalize 6 billion euros for the company as part of the rescue operation, on condition that a ban on cash dividends and operations be imposed Repurchase shares and some acquisitions until the value of the government support is refunded.
German Finance Minister Olaf Schultz welcomed the approval.
"This is very good news," he said. Good for the company and workers in Lufthansa and Germany.
He explained that entering the state will be for a limited period and that it will sell its stake as soon as the carrier regains its recovery and hopes that this will bring it back to profit.
Economy Minister Peter Altmire said that Lufthansa would remain an independent company in light of the government's stake being a minority stake, but the deal allowed to prevent forced acquisition of it.
