logo
Plus   Neg
Share
Email

TUI Secures Third Financial Package Of 1.8 Billion Euros

TUI secured a third bailout on Wednesday, after the travel giant reached a deal with the German government, private investors and banks for an extra 1.8 billion euros or $2.2 billion aid.

The latest financial package of 1.8 billion euros will include 1.3 billion euros from the state, which includes a capital increase with subscription rights of approx. 500 million euros, a silent participation convertible into shares of TUI by the WSF of 420 million euros, a non-convertible silent participation by the WSF of 280 million euros, a state guarantee of 400 million euros and an additional credit facility by KfW of 200 million euros.

TUI said the financing package strengthens its position and provides it with sufficient liquidity reserves in this volatile market environment. It also balances out the presumed travel restrictions until the beginning of the 2021 summer season. The package became necessary due to the increasing travel restrictions caused by the rising number of infections and the associated more short-term booking behaviour of some customers.

The latest financial package brings TUI's aid funding to up to 4.8 billion euros or $5.8 billion.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Food and Drug Administration said that it will rapidly work toward finalization and issuance of an emergency use authorization of Johnson & Johnson's (JNJ) single-shot COVID-19 vaccine candidate. Billionaire Warren Buffett's Berkshire Hathaway Inc. (BRK.A, BRK.B) reported that its fourth-quarter net earnings attributable to shareholders rose 23 percent to $35.84 billion from last year's $29.16 billion, with earnings per share improving to $23,015 per Class A share from $17,909 per Class A share in the prior year. Walmart Inc. has launched a nationwide drive to boost COVID-19 vaccination rates by reaching out to more residents in vulnerable communities. The retail giant will organize a series of community events at 43 locations in 18 states to administer the COVID-19 vaccine. Walmart said it plans to continue these new events over the next several weeks as vaccine allocations allow.
Follow RTT