TUI Says It Is Continuing To Consider Options For Raising New Finance But Has Not Made Any Decisions Yet
Holiday company TUI, which has taken on huge state loans to help it survive the pandemic, has said that it is continuing to consider options for raising new finance but has not made any decisions yet....
Holiday company TUI, which has taken on huge state loans to help it survive the pandemic, has said that it is continuing to consider options for raising new finance but has not made any decisions yet.
Bloomberg reported earlier that TUI is working with advisers on a possible €1 billion capital increase, sending the company's London-listed shares down by as much as 3.9%.
Last year, the COVID-19 pandemic stopped holidays and Hanover-based TUI has received multiple bailouts from the German government over the past 15 months. It will need to start repayments on some of its €4 billion of loans in 2022.
"Continuously Looking At All Possible Scenarios"
"We are continuously looking at all possible scenarios with regard to the pandemic and refinancing," a TUI spokesperson said, adding that this is in line with its previous statements. "Additional financing measures have not yet been decided. No banks have been mandated."
TUI chief executive Fritz Joussen has repeatedly said that the company will consider asset sales and a capital increase to help pay down debt. He has also said that a travel recovery will boost its finances.
Soaring In Germany, Depressed In The UK
In the group's German business, which is its biggest customer market alongside the UK, bookings are soaring, reaching higher rates than before the pandemic.
But its UK business remains depressed as strict quarantine rules deter UK residents from travelling and TUI has cancelled most holidays from the UK to big destinations like Spain and Greece until July 4.
The company could wait until after the summer season to assess how much it needs to raise, the Bloomberg report added.
Capital Increase And Hotel Joint Venture Stake Sale
TUI raised €568 million in a capital increase in January as part of its third bailout, and agreed to sell a 49% stake in a hotel joint venture for up to €670 million in May.