Lufthansa says it won’t buy back its shares, foreign ownership now 40.29 pct
Deutsche Lufthansa AG said it will not launch a share buyback programme in order to prevent foreign investors from holding more than 50 pct of the German flag carrier.
At present, foreign shareholders hold 40.29 pct of Lufthansa.
Should the percentage of Lufthansa shares held by foreigners exceed 50 pct, European law states the carrier will lose air traffic rights to fly to international destinations outside the continent.
However, after a careful analysis of share trading, Lufthansa ‘does not currently see a threat of excessive foreign control,’ and it ‘continues to place its confidence in the self-regulation of the capital market.’
Therefore, Lufthansa said it will not make use of a clause in the German Aviation Compliance Documentation Act authorising it to launch a share buyback programme in order to prevent ‘imminent excessive foreign control.’