Deutsche Lufthansa AG’s €2.1 Billion Capital Increase with Subscription Rights

White & Case LLP and Hengeler Mueller advised Deutsche Lufthansa AG on the deal.

Lufthansa has increased its share capital by issuing 597.7 million new shares at a subscription ratio of 1:1 (one new share for one existing share) and a subscription price of €3.58 per new share. The transaction has been fully underwritten by a syndicate of banks (firm underwriting). In addition, a number of funds and accounts under the management of BlackRock, Inc. entered into a sub-underwriting agreement for a total of €300 million and committed to fully exercise their subscription rights. 

The capital increase serves to strengthen Lufthansa’s equity position. The company will primarily use the net proceeds to repay the silent participation I of the Economic Stabilization Fund of the Federal Republic of Germany (ESF) in the amount of €1.5 billion.

The White & Case team which advised on the transaction was led by partners Thilo Diehl (Picture), Rebecca Emory, Alexander Kiefner and Karsten Wöckener (all Frankfurt), and included partners Lutz Krämer, Gernot Wagner, Bodo Bender (all Frankfurt), Hendrik Röger (Hamburg) and Norbert Wimmer (Berlin), local partners Peter Becker and Cristina Freudenberger (both Frankfurt), counsel Kathrin Ahting, Christoph Arhold (both Berlin), Josef Große Honebrink and Alexander Born (both Frankfurt), and associates Lukas Hackmann, Florian Fraunhofer, Heinrich Nemeczek, Daniel Gillenkirch, Philipp Kronenbitter, Benedikt Happ, Patrick Schoelles and Sina Reck (all Frankfurt) and Christian Crohn (Berlin).

The Hengeler Mueller team included partners Wolfgang Groß (Corporate and Capital Markets, Frankfurt), Georg Seyfarth (Düsseldorf, Corporate) and Hans-Jörg Niemeyer (State Aid and Subsidies, Brussels) as well as associates Henrik Gildehaus (Capital Markets, Frankfurt), Anja Linnertz (Corporate, Düsseldorf), Lukas Ritzenhoff and Joachim Hannes Burger (both State Aid and Subsidies, Brussels).

Involved fees earner: Henrik Gildehaus – Hengeler Mueller; Wolfgang Groß – Hengeler Mueller; Anja Linnertz – Hengeler Mueller; Hans-Jörg Niemeyer – Hengeler Mueller; Lukas Ritzenhoff – Hengeler Mueller; Georg Seyfarth – Hengeler Mueller; Kathrin Ahting – White & Case; Christoph Arhold – White & Case; Peter Becker – White & Case; Bodo Bender – White & Case; Alexander Born – White & Case; Christian Crohn – White & Case; Thilo Diehl – White & Case; Rebecca Emory – White & Case; Florian Fraunhofer – White & Case; Cristina Freudenberger – White & Case; Daniel Gillenkirch – White & Case; Lukas Hackmann – White & Case; Benedikt Happ – White & Case; Josef Große Honebrink – White & Case; Alexander Kiefner – White & Case; Lutz Krämer – White & Case; Philipp Kronenbitter – White & Case; Heinrich Nemeczek – White & Case; Sina Reck – White & Case; Hendrik Röger – White & Case; Patrick Schölles – White & Case; Gernot Wagner – White & Case; Norbert Wimmer – White & Case; Karsten Wöckener – White & Case;

Law Firms: Hengeler Mueller; White & Case;

Clients: Lufthansa;

Author: Giulia Di Palma