TUI to retain bigger stake in Hapag-Lloyd
TUI AG said it expects to close on the sale of its Hapag-Lloyd subsidiary in mid-March.
In an announcement Thursday, TUI also revealed it will retain a larger stake in Hapag-Lloyd — 43.33 percent, rather than the 33.33 percent stake previously announced.
TUI’s shares climbed about 16 percent on the news as worries that the sale might fall through abated.
TUI said it would acquire the additional shares from the Kuehne Holding AG, which will continue to be part of the consortium buying Hapag-Lloyd. The company is owned by Klaus Michael Kuehne, executive chairman of K'ehne + Nagel, but is separate from the big Swiss forwarder. Other members of the consortium include investment bank M.M. Warburg & Co., HSH Nordbank, the government of Hamburg, and insurers Signal-Iduna and HanseMerkur.
TUI said the deal, subject to approval by its supervisory board, would close in the 12th calendar week. The valuation of Hapag-Lloyd will continue to be 4.45 billion euros ($5.7 billion), and when the deal closes TUI AG would receive 1.6 billion euros ($2 billion). TUI said that amount “is below expectations due to the now increased stake and the fact that real-estate holdings have not yet been divested.
In order to ensure the financial stability of the Hapag-Lloyd Group following the ownership change,” TUI also said it “is willing to provide additional credit facilities worth a total of up to 1 billion euros ($1.28 billion) for a limited period of time at customary market terms and conditions.” TUI said it will require the approval of the supervisory board for these financing measures.
TUI said it will be entitled to sell its additional shares in the company at any time after closing. The consortium has a preemption right on the stake, but it also has an obligation to acquire the stake.