TUI has launched a new capital increase against cash contributions excluding shareholders' subscription rights.
TUI intends to issue up to 162,291,441 new no-par value ordinary registered shares corresponding to approximately up to 10% of the company’s share capital. The New Shares will carry dividend rights as from 1 October 2021.
The number of New Shares and the placement price per New Share will be determined on the basis of an accelerated bookbuilding which has already started. The New Shares will be exclusively offered for sale to institutional investors as part of an international private placement.
TUI intends to use the net proceeds from the capital increase and existing cash resources to repay in full the Silent Participation II of €671 million from the German government (Economic Stabilisation Fund, “ESF”).
In addition, TUI will reduce the outstanding KfW credit lines by €336 million to €2.1 billion. As a result, in addition to the KfW credit line, the remaining government financing (ESF) for TUI will be the approximately €59 million bonds with warrants convertible into shares and the Silent Participation I, also convertible into shares, of €420 million. The company has agreed to a lock-up of 90 days, subject to customary exceptions.
Fritz Joussen, CEO of TUI Group: "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."
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.