TUI announces €1.8b capital increase

As part of its goal of repaying state aid, German travel giant TUI said on Friday that it has launched a €1.8 billion capital increase programme, reported dpa.

As part of the move, the firm will offer 328.910 million new shares at a subscription ratio of 8:3, meaning 8 new shares for 3 existing shares.

The subscription price of €5.55 per new share represents a discount to theoretical ex-rights price of around 39.85%.

The Group intends to use the net proceeds of the offering of around €1.75 billion to reduce interest costs, debt, and other purposes.

In addition, TUI aims to significantly reduce the €2.1 billion credit line under the KfW facility to €1.1 billion.

Existing shareholders, other than major shareholder sanctioned persons or entities, can buy new shares during the subscription period from March 28, up to April 17.