Lufthansa seeks investor support for share sale in funding push

Lufthansa is seeking shareholder approval to raise up to E2.4b, funds that could lower but not be enough to avoid the need for a government orchestrated bailout the carrier is facing to get through the coronavirus crisis. The airline is seeking to issue 176m new shares, or 36% of its existing capital, it said in an invite to the annual general meeting on May 5. That offer, which includes subscription rights, would be valued at about E1.5b at current market prices. The company is also seeking permission to raise about 420m in convertible bonds, based on current prices, and a similar amount of equity in a separate capital hike of about 10%. Issuing the securities would give Lufthansa some flexibility as it contends with a liquidity crunch that’s hit all airlines worldwide. Yet the fundraising measures would come amid a market rout that’s unsettling investors, potentially leading to lower prices and smaller amounts raised. A spokesman for Lufthansa said the move was routine and could have happened regardless of the coronavirus crisis. Lufthansa sought a similar amount last year, he said.<br/>