(Redaction error in last paragraph corrected. Reference to reverse stock split deleted).

HANOVER (dpa-AFX) - The world's largest travel provider Tui plans to repay Corona aid from the Economic Stabilization Fund (WSF) in full via a capital increase. "We will use the proceeds to repay the aid received from the WSF, including interest," said CEO Sebastian Ebel, according to a statement Friday. Shareholders had already approved preparations for another capital increase at an online annual general meeting in February. The German government had propped up Tui with the funds after the company came under considerable financial pressure during the pandemic due to collapsing business. With the current capital increase, the Group aims to raise 1.8 billion euros gross.

Around 328.9 million shares are to be issued at a price of 5.55 euros each. Shareholders can exercise their subscription rights from next Tuesday (March 28) until April 17 and receive eight new shares for every three existing shares. At the Annual General Meeting in mid-February, the shareholders had already approved the preparation of a new capital increase.

Alexei Mordashov, the main shareholder sanctioned as a result of the Ukraine war, is not allowed to subscribe to any shares. Individuals and companies close to him are also affected by the ban. According to the latest Group information, he indirectly holds almost 31 percent of Tui via companies.

Tui intends to use the net proceeds to settle its liabilities to WSF. In total, WSF will thus receive around 750 million euros. In addition, Tui intends to settle around 440 million euros from a partial drawdown of a credit line from the development bank KfW. Another credit line with banks is to be significantly reduced.

Thanks to billions of euros in government support and fresh money from private owners, Tui got through the Corona pandemic, which threatened its existence. The German government had also supported Lufthansa in June 2020 with stabilization measures. The latter was already able to repay the silent participations in full by November 2021. In mid-September, WSF then sold its remaining stake and thus exited Lufthansa again.

Tui shares fell 5.63 percent to 15.10 euros on Friday morning./ngu/nas/mis