TUI, the German travel company that owns the biggest stake in Hapag-Lloyd, is working with three banks to prepare the sale of its stake in the container line, according to a report by Bloomberg News.
Credit Suisse, Deutsche Bank and Goldman Sachs are advising TUI on the sale, which would likely be done through an initial public offering, according to people close to the talks who were interviewed by Bloomberg but who declined to be identified because the matter is private.
The IPO of the stake in Hapag-Lloyd, Germany’s biggest container line, would happen next year, possibly in the second quarter, two of the people said.
Hapag-Lloyd is No. 6 on the JOC list of Top 15 Container Fleet Operators.
TUI, which holds a 43 percent stake in Hapag-Lloyd, said Sept. 22 that its stake will increase to 49.8 percent by the end of the year after some debt is refinanced. The shipping line on Nov. 16 reported record earnings before interest and taxes of $666 million for the first nine months of 2010 after freight rates and volume increased.
TUI has repeatedly said it wants to dispose of its stake in Hapag-Lloyd to focus on tourism. The company, based in Hanover, Germany, hasn’t been able to find a buyer. The increase of its stake is the result of the conversion of a hybrid loan for Hapag-Lloyd into equity, according to the company’s statement in September.
A spokesman for TUI didn’t immediately respond to a phone call seeking comment.
A Hamburg-based investor group, including German billionaire Klaus Michael Keuhne, M.M. Warburg, HSH Nordbank and Hamburg’s state government, bought a majority stake in Hapag-Lloyd.
Hapag-Lloyd’s business last year was affected by the global economic crisis. The shipping company posted an operating loss in the shortened fiscal year through September 2009 of $887 million after a profit of $279 million a year earlier.
Credit Suisse, Deutsche Bank and Goldman Sachs are advising TUI on the sale, which would likely be done through an initial public offering, according to people close to the talks who were interviewed by Bloomberg but who declined to be identified because the matter is private.
The IPO of the stake in Hapag-Lloyd, Germany’s biggest container line, would happen next year, possibly in the second quarter, two of the people said.
Hapag-Lloyd is No. 6 on the JOC list of Top 15 Container Fleet Operators.
TUI, which holds a 43 percent stake in Hapag-Lloyd, said Sept. 22 that its stake will increase to 49.8 percent by the end of the year after some debt is refinanced. The shipping line on Nov. 16 reported record earnings before interest and taxes of $666 million for the first nine months of 2010 after freight rates and volume increased.
TUI has repeatedly said it wants to dispose of its stake in Hapag-Lloyd to focus on tourism. The company, based in Hanover, Germany, hasn’t been able to find a buyer. The increase of its stake is the result of the conversion of a hybrid loan for Hapag-Lloyd into equity, according to the company’s statement in September.
A spokesman for TUI didn’t immediately respond to a phone call seeking comment.
A Hamburg-based investor group, including German billionaire Klaus Michael Keuhne, M.M. Warburg, HSH Nordbank and Hamburg’s state government, bought a majority stake in Hapag-Lloyd.
Hapag-Lloyd’s business last year was affected by the global economic crisis. The shipping company posted an operating loss in the shortened fiscal year through September 2009 of $887 million after a profit of $279 million a year earlier.