TUI AG - Group reaches agreement with anchor shareholder, banks and federal government on a total package of 1.8 billion euros
- Measures strengthen the Group's equity and balance sheet and secure liquidity for the ongoing pandemic in 2021
- TUI has financial resources and credit facilities of 2.5 billion euros (as at 30 November 20201)
TUI has reached an agreement with the Economic Support Fund (WSF), KfW, the banks and the largest single shareholder Unifirm Ltd. (Mordashov family) on an additional financial package of 1.8 billion euros. TUI is taking further precautions in view of the rising number of infections since autumn, strict travel restrictions in many countries and the resulting shorter booking times of customers. The financial package is intended to ensure that the company can bridge the gap if the pandemic persists in 2021. Following the first reports of vaccine successes, TUI expects the pandemic situation to improve in the course of the first half of 2021 and a greater return of holiday travel.
The package consists of silent participations of the WSF, a further credit line of the KfW, guarantees and a capital increase with subscription rights, which is to be resolved at an extraordinary general meeting of TUI in January 2021. The Mordashov family has made a long-term strategic investment in TUI and has agreed to participate in the capital increase with its company Unifirm Ltd. as TUI's largest single shareholder.
Fritz Joussen, CEO of TUI AG: 'Before the Corona Pandemic, TUI was a very healthy company. The market is intact, the demand is there. But we have not been able to generate any significant revenues since March. Our integrated business model allows us to react very flexibly to short-term changes in the pandemic situation, just as we successfully ramped up our travel programme for a few weeks in July after the first wave. People want to travel, tourism remains a growth industry and an important sector for stabilising the southern euro area. The financial package provides the security to look consistently ahead and to prepare the Group strategically and structurally for the time after the pandemic. With these measures, the Group is securing liquidity for a continuing pandemic in 2021, while at the same time improving our balance sheet structures in the long term. The overall package of different financing from various partners shows the broad confidence of all parties involved in the future of tourism and the TUI Group'.
Including the additionally agreed financial package, TUI AG had financial resources and credit facilities of 2.5 billion euros as at 30 November 2020[1].
For further details of the package of measures and the capital increase, please refer to the ad-hoc release of 2 December 2020 which is attached to this announcement.
BofA Securities Europe SA ('BofA Securities'), Barclays Bank Ireland PLC ('Barclays'), Citigroup Global Markets Europe AG ('Citigroup') and Deutsche Bank AG ('Deutsche Bank') are acting as Joint Global Coordinators and Joint Bookrunners in respect of the capital increase. Deutsche Bank AG, London Branch and Merrill Lynch International are acting as Joint Sponsors in respect of the capital increase for UK Listing Rules purposes. Barclays Bank PLC and Merrill Lynch International are joint corporate brokers to the company. Deutsche Bank is acting as Settlement Agent.
1pro forma, post 300m Senior Notes redemption
TUI Group is the world's leading integrated tourism group operating in more than 100 destinations worldwide. The company is headquartered in Germany. The TUI Group's share is listed in the FTSE 250 index and in the German open market.
In financial year 2019, TUI Group recorded turnover of around €19bn and an operating result of €893m. The Group employs more than 70,000 people worldwide. TUI offers its 28 million customers, including 21 million customers in European national companies, integrated services from a single source. It covers the entire tourism value chain under one roof. This comprises more than 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson as well as 18 cruise ships ranging from the MS Europa and MS Europa 2 luxury class vessels and expedition ships to the Mein Schiff fleet of TUI Cruises and the vessels of Marella Cruises in the UK. The Group also includes leading European tour operator brands, five airlines with 150 modern medium- and long-haul aircraft and 1,600 travel agencies. Apart from the expansion of its core business with hotels, cruises and destination activities, TUI is increasingly investing in digital platforms. The Group is transforming as a digital company.
Global responsibility for sustainable economic, ecological and social activity is a key feature of our corporate culture. TUI Care Foundation, initiated by TUI, promotes the positive effects of tourism, education and training as well as environmental and social standards with projects in 25 countries. It thus contributes to the development of the holiday destinations. TUI Care Foundation, operating around the world, initiates projects creating new opportunities for the next generation.
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TUI AG published this content on 02 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2020 15:48:01 UTC
