TUI To Sell Its 49% Stake In RIU Hotels JV To RIU-Group

TUI AG (TUIFF.PK) said that it has reached an agreement to dispose its 49% stake in RIU Hotels S.A. Joint Venture to Saranja S.L., an entity of the RIU-Group owned by Carmen and Luis Riu. The Enterprise Value totals around 1.5 billion euros, thereof around 670 million euros for TUI's minority stake including an earn-out-element.

The expected net cash consideration pre earn-out amounts to around 540 million euros at closing of the transaction. The earn-out-element is payable upon RIU Hotels S.A. delivering its fiscal year 2022 and 2023 operating budget.

The transaction is expected to complete in late summer 2021.

TUI said it will use the proceeds to reduce the Group's debt which substantially increased during the Corona pandemic.

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