March 24 (Reuters) - TUI AG will launch a
capital increase with the aim of repaying COVID-19 pandemic aid
it received from the German government, the German tourism group
said on Friday.
TUI aims to raise gross proceeds of 1.8 billion euros
($1.95 billion) via the offering of 328,910,448 new shares at a
subscription ratio of eight new shares for three existing ones,
at a price of 5.55 euros per share.
The company received state aid of 4.3 billion euros during
the coronavirus crisis and still has to repay 2.6 billion euros,
including a silent participation and an option bond, which are
now being repaid.
The aid includes a 2.1 billion euro credit line from state
bank KfW, which TUI intends to reduce to 1.1 billion euros.
($1 = 0.9235 euros)
(Reporting by Tristan Chabba in Gdansk
Editing by Miranda Murray)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.