Breaking Travel News

TUI completes Hapag-Lloyd sale to become pure leisure organisation

TUI completes Hapag-Lloyd sale to become pure leisure organisation

TUI AG has agreed on the disposal of all its remaining shares in Hapag-Lloyd AG, some 8.5 million shares.

The disposal took place in an open market block trade to a guaranteed minimum price close to market closing.

Prior to this trade TUI AG had already disposed six million shares in individual open market transactions since March 2017.

Horst Baier, TUI Group chief financial officers, said: “By disposing of all of its remaining Hapag-Lloyd AG shares TUI AG successfully concludes its non-core business disposal program as defined after the merger between TUI AG and TUI Travel PLC in December 2014, achieving its strategic objective to transform TUI AG into a pure play vertically integrated tourism group.

“As announced the revenues will be used for the transformation to an integrated tourism business with the focus in own hotel brands and cruises and in strengthen the balance sheet.”

For 2018 and 2019 TUI AG is contemplating to structure the intended cruise ship acquisitions of Mein Schiff 1 and Mein Schiff 2 the British subsidiary TUI UK from TUI Cruises as a straight cash transaction.

TUI UK will then take over Mein Schiff 1 and 2 from TUI Cruises into their British fleet.

TUI AG previously accounted for its shareholding in Hapag-Lloyd AG as a financial asset available for sale.

As at March 2017 the carrying value was €395 million in TUI AG’s consolidated balance sheet.