The Supervisory Board of TUI AG at its EGM held today approved the sale of its 11.33% stake in Hapag-Lloyd to the Albert Ballin consortium, the operator's press release said.
These shares have resulted from the conversion of the Hybrid I loan into equity in Hapag-Lloyd as per the end of the year 2010. The consortium thus exercises its option resolved in September 2010. The purchase price for these shares totals 315 million euro. In the event of an IPO of Hapag-Lloyd, the purchase price paid by the Albert Ballin consortium will increase by up to 35 million euro (earn out) if certain conditions are met. The sale of shares is subject to approval by the shareholders meeting of Hamburgische Seefahrtsbeteiligung Albert Ballin GmbH & Co. KG.
Following the closing of the transaction in May 2011,TUI will hold a 38.4 per cent stake in Hapag-Lloyd representing capital employed of 1.71 billion euro (1.18 billion euro in equity / 530 million euro in loans and hybrid capital).
At today's meeting, the Supervisory Board also authorized the Executive Board as a matter of principle to sell further shares in Hapag-Lloyd in the framework of an IPO.
These shares have resulted from the conversion of the Hybrid I loan into equity in Hapag-Lloyd as per the end of the year 2010. The consortium thus exercises its option resolved in September 2010. The purchase price for these shares totals 315 million euro. In the event of an IPO of Hapag-Lloyd, the purchase price paid by the Albert Ballin consortium will increase by up to 35 million euro (earn out) if certain conditions are met. The sale of shares is subject to approval by the shareholders meeting of Hamburgische Seefahrtsbeteiligung Albert Ballin GmbH & Co. KG.
Following the closing of the transaction in May 2011,TUI will hold a 38.4 per cent stake in Hapag-Lloyd representing capital employed of 1.71 billion euro (1.18 billion euro in equity / 530 million euro in loans and hybrid capital).
At today's meeting, the Supervisory Board also authorized the Executive Board as a matter of principle to sell further shares in Hapag-Lloyd in the framework of an IPO.
TUI AG is one of the largest travel group in Europe providing a broad range of services associated with holiday and travel.