TUI continues to execute its goal of rapidly deleveraging the Group, reducing interest costs and further reducing Corona state aid. The Corona state aid received in the pandemic is to be returned as quickly as possible and in sequence. TUI’s Executive Board and Supervisory Board have therefore today resolved to launch a capital increase against cash contributions excluding shareholders’ subscription rights. The proceeds from the capital increase and existing cash resources are to be used to repay in full the government Silent Participation II of 671 million euros from the German government (Economic Stabilisation Fund, “ESF”).
In addition, the Group will also reduce the outstanding KfW credit lines by 336 million euros to 2.1 billion euros. As a result, in addition to the KfW credit line, the remaining government financing (ESF) for TUI will be the approximately 59 million euros bond with warrants convertible into shares and Silent Participation I, also convertible into shares, of 420 million euros.
The Group had already returned initial credit lines by KfW of around 700 million euros on 1 April 2022.
Fritz Joussen, CEO of TUI Group, said: “We are implementing what we announced and committed to: the further repayment of the Corona aid, and we are doing so as fast as possible. Our goal is to return to normality quickly and focus on new growth. We are in stable waters, the market is intact, and we expect a strong summer of travel and a good fiscal year. For the current full year 2022, we therefore expect to return to significantly positive earnings. With the transformation and realignment of the Group, TUI is leaner, more digital and more efficient. This is the basis for continuing to steadily and swiftly reduce the Corona financial support and lower our debt and interest costs.”
For the cash capital increase, TUI plans to issue up to 162,291,441 new shares corresponding to approximately up to 10 percent of TUI AG’s share capital. The new shares will be exclusively offered for sale to institutional investors as part of an international private placement. The number of new shares and the placement price per new share will be determined on the basis of an accelerated bookbuilding, which will start immediately.
The new shares will be admitted to trading on the London Stock Exchange in the form of depositary interests and the Regulated Market of the Hanover Stock Exchange and will be included to trading on the Open Market (Freiverkehr) of the Frankfurt Stock Exchange (Xetra).
Barclays, HSBC and UniCredit Bank AG are acting as Joint Global Coordinators and, together with Bank of America, Commerzbank, Crédit Agricole Corporate and Investment Bank and Société Générale, as Joint Bookrunners.
