Share of foreign investors in Lufthansa exceeds 40%
Frankfurt (LUFTHANSA) - In order to retain the air traffic operating licence under European law and air traffic rights to fly to destinations outside Europe, the proportion of foreign shareholders may not exceed 50 per cent of the company's share capital. When the proportion of foreign shareholders reaches 40 per cent, the company is therefore authorised by the German Aviation Compliance Documentation Act to buy back its own shares to prevent imminent excessive foreign control. After a careful analysis of share trading, Lufthansa however does not currently see a threat of excessive foreign control.
The company continues to place its confidence in the self-regulation of the capital market. Therefore Lufthansa will currently not make use of the share buy-back option.
The German Aviation Compliance Documentation Act requires Lufthansa to report on the nationality of its shareholders every quarter. When certain thresholds for the number of shares held by foreign shareholders are reached, e.g. 40 per cent, the act also provides for an obligatory disclosure.
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