Tuesday, January 05, 2021
State can join
Tui shareholders approve the rescue package
Due to the restrictions in the corona pandemic, the travel company Tui is suffering a business slump that threatens its existence. The company can only be saved from bankruptcy with the help of a financial injection from shareholders and the state. The owners clear the way for a rescue package.
After Lufthansa, the German state can now take a larger stake in the Tui travel group. The owners of the company, which was badly hit by the Corona crisis, approved a corresponding right to exchange assets for shares with a large majority. This clears the way for the federal government to join Tui with a total of up to 25 percent plus one share.
The company had called its owners together for an extraordinary general meeting that was being held online because of the pandemic restrictions. In doing so, the majority of the shareholders created the final formal requirements for a larger state participation.
The EU Commission had previously announced on Monday evening in Brussels that it believes that the framework conditions under competition law for up to 1.25 billion euros in German aid have been met. Specifically, it concerns a silent participation in Tui of 420 million euros, which the state economic stabilization fund (WSF) is now allowed to convert into direct share certificates according to the resolution of the shareholders.
The package also includes a convertible bond worth 150 million euros, for which the essential conditions had already been clarified in late summer. In addition, there is now a second, albeit non-convertible, silent participation of up to 680 million euros. The exact exhaustion of this last part depends, among other things, on whether the state of Lower Saxony has agreed to secure a sum of up to 400 million euros with its own guarantee at the Tui headquarters in Hanover.
. (tagsToTranslate) Economy (t) TUI (t) Corona crisis (t) Tourism industry (t) Rescue package