The European Commission approved the German state’s contribution up to 1.25 billion Euros to the recapitalization of the TUI Group.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “As many other companies active in the tourism sector, TUI has been hit particularly hard by the coronavirus crisis. With this measure, Germany will contribute up to €1.25 billion to TUI’s recapitalisation and help the company weather the crisis. At the same time, the State will be sufficiently remunerated for the risk taxpayers assume and the support will come with strings attached to limit distortions of competition. I welcome the participation by private investors to the plan, as it limits the need for State aid while contributing to the recovery of TUI.”
TUI agreed with the German government and state banks for a third financing package for a total of 1.8 Billion Euros in early December. 500 million euros of the package will be collected from shareholders through capital raising. The Russian company Unifirm, owned by Alexey Mordashov, the largest shareholder in TUI with a 25% share, had pledged to support the capital raising up to a total of 36%.
The bail out package will be voted on by the shareholders at TUI’s extraordinary general meeting on January 5th.
This post was published on %s = human-readable time difference 11:44 pm