TUI: no decision yet on raising additional funding
BERLIN, June 16 (Reuters) – TUI (TUIGn.DE), the world’s largest vacation company that has taken out huge state loans to help it survive the pandemic, said on Wednesday it was continuing to consider options to raise new funding but had not made any decisions yet.
Bloomberg earlier reported that TUI was working with advisers on a possible â¬ 1bn ($ 1.2bn) capital raise, causing the company’s London-listed shares to drop to 3.9%. .
Last year the pandemic halted the holidays and Hanover-based TUI has received several bailouts from the German government in the past 15 months. It will have to start repaying part of its 4 billion euros in loans in 2022.
“We are constantly reviewing all possible scenarios with regards to the pandemic and the rollover,” a TUI spokesperson said, adding that this was in line with his previous statements.
“Further financing measures have not yet been decided. No bank has been mandated.”
TUI chief executive Fritz Joussen has repeatedly said the company will consider asset sales and a capital increase to help pay off debt. He also said that a resumption of travel would increase his finances.
In the group’s German activity, which along with Great Britain is its largest customer market, bookings are skyrocketing, reaching higher rates than before the pandemic.
But its UK operations remain depressed as strict quarantine rules deter Britons from traveling and TUI has canceled most UK vacations to major destinations like Spain and Greece until July 4.
The company could wait until after the summer season to assess how much it needs to lift, the Bloomberg report added.
TUI stock fell 1.2% to 393 pence at 1:10 p.m. GMT. The group raised 568 million euros in a capital increase in January as part of its third bailout plan and agreed in May to sell a 49% stake in a hotel joint venture for a maximum amount of 670 million euros.
($ 1 = â¬ 0.8257)
Reporting by Ilona Wissenbach Writing by Madeline Chambers Editing by Riham Alkousaa
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