June 25, 2020 / 7:49 AM / a month ago

EU regulators okay with conditions Lufthansa's 6 billion euro recapitalisation

Lufthansa's flags flutter in front of a temporary closed First Class Terminal at Frankfurt Airport, Germany June 25, 2020. REUTERS/Kai Pfaffenbach

BRUSSELS (Reuters) - EU state aid regulators approved on Thursday German carrier Lufthansa’s (LHAG.DE) 6-billion-euro ($6.74 billion) recapitalisation subject to a ban on dividends, share buybacks and some acquisitions until the state support is paid back.

The European Commission said Germany also submitted a business plan to redeem by 2026 both the loan as well as the recapitalisation instruments, and pledged to work out an exit strategy within 12 months after the aid is granted, unless the state stake is reduced below 25% of equity by then.

Germany will also have to come up with a restructuring plan for Lufthansa if it has not sold off its stake six years after granting the recapitalisation aid.($1 = 0.8903 euros)

Reporting by Marine Strauss @StraussMarine, Editing by Gabriela Baczynska

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