Corona aid and loans
TUI wants to pay off billions in debt with a capital increase
03/24/2023 11:14 am
Travel provider TUI wants to be honest and repay Corona aid and loans totaling over one billion euros. This should be possible with the help of a capital increase. Almost 330 million shares are to be issued in the near future. However, the main shareholder may not access it.
The world’s largest travel provider TUI wants to collect 1.8 billion euros through a capital increase and fully repay the Corona aid from the Economic Stabilization Fund (WSF). “We will use the proceeds to pay back the aid received from the WSF, including interest,” said CEO Sebastian Ebel.
The federal government had supported TUI with the money because the company had come under pressure in the pandemic. Already in February, the general meeting had approved the preparation of another capital increase. The TUI shares fell in the morning by 5.6 percent to 15.10 euros.
Around 329 million shares are to be issued at a price of EUR 5.55 per share. Shareholders can exercise their subscription rights from March 28 to April 17 and receive eight new shares for every three existing shares. The main shareholder, Alexei Mordashov, sanctioned as a result of the Ukraine war, is not allowed to subscribe to any shares. According to the latest group information, he indirectly holds almost 31 percent of TUI through companies.
Billion repayment planned
TUI intends to use the net proceeds to settle its liabilities to the WSF. A total of around 750 million euros should flow to the WSF. In addition, TUI wants to repay a loan of around 440 million euros to the KfW development bank. Another bank credit line is to be significantly reduced.
The federal government had also supported Lufthansa in the Corona crisis. The airline was able to repay the silent participations in full at the end of 2021. In September, the WSF then sold its remaining stake and thus got out of Lufthansa again.
