TUI Group has approved a \u20ac1.1 billion capital increase to improve its balance sheet and reduce interest costs on its loans.<\/p>\n\n\n\n
\u201cFollowing the transformation and restructuring of business areas and the reactivation of tourism in recent months, our goal is now to refinance and reduce government loans. We want to, can, and will find our way back to economic strength, and we are working tirelessly toward this,\u201d stated TUI CEO Friedrich Joussen, who indicated that the new company emerging from the COVID crisis will be more agile, digital, and efficient.<\/p>\n\n\n\n
In January, the group already carried out an initial expansion in which Joussen exceeded 1 million shares.<\/p>\n\n\n\n
In this capital increase, TUI will offer 523,520,778 new shares at a subscription ratio of 10:21 (10 new shares for every 21 existing shares).<\/p>\n\n\n\n
Unifirm Ltd, owned by Russian financier Alexei Mordashov, supports the strategy and, as TUI’s largest shareholder, has agreed to exercise all subscription rights attributable to its 32% stake and, consequently, subscribe for the new shares.<\/p>\n\n\n\n
The remainder of the capital increase is fully underwritten by Barclays Bank Ireland PLC, BofA Securities, Citigroup, Deutsche Bank, and HSBC acting as joint global coordinators and joint bookrunners, and Commerzbank, Landesbank Baden-W\u00fcrttemberg, and Natixis acting as bookrunners.<\/p>\n\n\n\n
TUI intends to use the net proceeds from the capital increase to reduce interest costs and net debt to the German state-owned development bank (KfW). Last July, the group reached an agreement with KfW and private banks to extend the maturity of its \u20ac4.7 billion credit lines by another two years, until the summer of 2024.<\/p>\n\n\n
The capital increase aims to improve the group’s financial position, reduce interest costs, and repay government loans taken during the pandemic.<\/p>\nWho is the main shareholder supporting this move?<\/strong>\n Unifirm Ltd, owned by Alexei Mordashov, is TUI’s largest shareholder and has agreed to exercise all subscription rights for its 32% stake.<\/p>\nWhat are the subscription terms for the new shares?<\/strong>\n TUI will offer 523,520,778 new shares at a subscription ratio of 10:21, meaning 10 new shares for every 21 existing shares.<\/p>","protected":false},"excerpt":{"rendered":" TUI Group Approves \u20ac1.1 Billion Capital Increase TUI Group has approved a \u20ac1.1 billion capital increase to improve its balance sheet and reduce interest costs on its loans. \u201cFollowing the transformation and restructuring of business areas and the reactivation of tourism in recent months, our goal is now to refinance and reduce government loans. We…<\/p>\n","protected":false},"author":0,"featured_media":88492,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2858],"tags":[113],"thb-sponsors":[],"class_list":["post-117477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tourism","tag-tui"],"article_style_override":"on","post-style":"style2","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/turism-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=117477"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/117477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/88492"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=117477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=117477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=117477"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=117477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}