TUI AG(TUIFF.PK), a German leisure, travel, and tourism company, said on Friday that it has launched a 1.8 billion euros capital increase program, to repay the WSF state aid and reduce the KfW credit lines.
As part of the move, the firm will offer 328.910 million new shares at a subscription ratio of 8:3, meaning 8 new shares for 3 existing shares. The subscription price of 5.55 euro per new share represents a discount to theoretical ex-rights price of around 39.85 percent.
The Group intends to use the net proceeds of the offering of around 1.75 billion euros to reduce interest costs, debt, and other purposes.
In addition, TUI aims to significantly reduce the 2.1 billion euros credit line under the KfW facility to 1.1 billion euros.
Existing shareholders, other than major shareholder sanctioned persons or entities, can buy new shares during the subscription period from March 28, up to April 17.
Those who are holding depositary interests in the company's shares (DIs) on March 29, will be credited with pre-emptive subscription rights to acquire additional DIs representing new shares, from March 30, up to 10:00 BST of April 17.
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