TUI will raise €1.1 billion by selling new stock, making it the latest travel company to tap investors for cash to reduce a giant pandemic debt pile.
The share sale, at a discount price of €2.15 each in a rights offering, will allow the world’s biggest tour operator to reduce its draw on a state-backed rescue loan to zero, TUI said on Wednesday in a statement.
Airlines have been selling stock to firm up balance sheets as easing border restrictions begin to revive bookings. Deutsche Lufthansa said it would raise €2.14 billion in a rights issue to help pay down a €9 billion government bailout package, while EasyJet announced a £1.2 billion capital raise last month.
Shares of Hanover, Germany-based TUI, fell as much as 2.6 per cent before trading little changed at 329.1 pence in London, where it has its main listing.