TUI raises $447m in capital raise to further pay down debt


The Tui app is seen on a smartphone in this illustration taken February 27, 2022. REUTERS/Dado Ruvic/Illustration/Files

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FRANKFURT, May 18 (Reuters) – Holiday group TUI (TUIGn.DE) said on Wednesday it had raised around 425 million euros ($447 million) in its capital raise to repay part of the bailout of the German state he had received during the pandemic. Read more

TUI had taken out €4.3billion loans and been repeatedly bailed out by the German government as COVID halted holidays, but is aiming to turn a profit again in 2022 as people rush to book long-awaited visits amid lifted restrictions. Read more

The company said it placed the 162,291,441 new shares with institutional investors at 2.62 per share, 10% below Tuesday’s closing price, in its third capital raise since January 2021.

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Germany-listed TUI stock was down 11.2% at 0845 GMT.

TUI had said it would use the proceeds and existing cash resources to repay in full the second installment of a so-called German government silent participation and reduce outstanding credit lines from state lender KfW (KFW.UL ).

“The timing seems right, ahead of what should be a strong summer season, and ahead of what could prove to be a tougher winter,” brokerage Stifel said.

($1 = 0.9511 euros)

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Reporting by Zuzanna Szymanska, editing by Miranda Murray

Our standards: The Thomson Reuters Trust Principles.

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