Europe’s largest tour operator TUI, plans to raise capital in order to overcome covid-19 related financial difficulties.
According to the news of the German Handelsblatt newspaper, TUI, aims to increase its capital between 700 Million to 1 Billion Euros. The Hannover based travel giant is registered on the London Stock Exchange.
TUI, reported a loss of 1.45 Billion Euros for the second quarter due to the Covid-19 crisis and received around 3 Billion Euros funding from the German state.
According to the report, Russian billionaire Alexei Mordashov, holding 25% of the company’s shares, is expected to provide around 300 million Euros of additional capital.
Mordashov has been a shareholder at TUI since 2007. Since then, he has increased his share in the group from 3% to 24.9%. Mordashov also owns 90 % of TUI’s subsidiaries in Russia and Ukraine since October 2018 .
TUI CEO Fritz Joussen said at a meeting in mid-August, “We have to do something about the balance sheet. For instance, it could be a capital increase ”. Therefore it’s believed that Tui’s other shareholders, including the Egyptian billionaire El Chiaty family and the Spanish hotelier family Riu, are also aware of the plan.
This post was published on %s = human-readable time difference 6:43 pm