Measures strengthen the Group’s equity and balance sheet and secure liquidity for the ongoing pandemic in 2021. TUI has financial resources and credit facilities of 2.5 billion euros (as at 30 November 2020).
TUI has reached an agreement with the Economic Support Fund (WSF), KfW, the banks and the largest single shareholder Unifirm Ltd. (Mordashov family) on an additional financial package of 1.8 billion euros. TUI is taking further precautions in view of the rising number of infections since autumn, strict travel restrictions in many countries and the resulting shorter booking times of customers. The financial package is intended to ensure that the company can bridge the gap if the pandemic persists in 2021. Following the first reports of vaccine successes, TUI expects the pandemic situation to improve in the course of the first half of 2021 and a greater return of holiday travel.
The package consists of silent participations of the WSF, a further credit line of the KfW, guarantees and a capital increase with subscription rights, which is to be resolved at an extraordinary general meeting of TUI in January 2021. The Mordashov family has made a long-term strategic investment in TUI and has agreed to participate in the capital increase with its company Unifirm Ltd. as TUI's largest single shareholder.
Fritz Joussen, CEO of TUI AG: "Before the Corona Pandemic, TUI was a very healthy company. The market is intact, the demand is there. But we have not been able to generate any significant revenues since March. Our integrated business model allows us to react very flexibly to short-term changes in the pandemic situation, just as we successfully ramped up our travel programme for a few weeks in July after the first wave. People want to travel, tourism remains a growth industry and an important sector for stabilising the southern euro area. The financial package provides the security to look consistently ahead and to prepare the Group strategically and structurally for the time after the pandemic. With these measures, the Group is securing liquidity for a continuing pandemic in 2021, while at the same time improving our balance sheet structures in the long term. The overall package of different financing from various partners shows the broad confidence of all parties involved in the future of tourism and the TUI Group".
Including the additionally agreed financial package, TUI AG had financial resources and credit facilities of 2.5 billion euros as at 30 November 20201.
BofA Securities Europe SA, Barclays Bank Ireland PLC, Citigroup Global Markets Europe AG and Deutsche Bank AG are acting as Joint Global Coordinators and Joint Bookrunners in respect of the capital increase. Deutsche Bank AG, London Branch and Merrill Lynch International are acting as Joint Sponsors in respect of the capital increase for UK Listing Rules purposes. Barclays Bank PLC and Merrill Lynch International are joint corporate brokers to the company. Deutsche Bank is acting as Settlement Agent.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
