German-based tourism company TUI Group has decided to distance itself from the container business as it sold its stake in compatriot container carrier Hapag-Lloyd.
The company disposed of a total of 8.5 million of shares in an open market block trade to a guaranteed minimum price close to yesterday’s market closing. Prior to this trade TUI AG had already disposed of 6 million shares in individual open market transactions since March 2017.
“By disposing of all of its remaining Hapag-Lloyd AG shares TUI AG successfully concludes its non-core business disposal program as defined after the merger between TUI AG and TUI Travel PLC in December 2014,” Horst Baier, TUI Group CFO, said.
For 2018 and 2019 TUI AG is contemplating to structure the intended cruise ship acquisitions of Mein Schiff 1 and Mein Schiff 2 by the British subsidiary TUI UK from TUI Cruises GmbH as a straight cash transaction. TUI UK will then take over Mein Schiff 1 and Mein Schiff 2 from TUI Cruises into their British fleet.
TUI AG previously accounted for its shareholding in Hapag-Lloyd AG as a financial asset available for sale. As at March 31, 2017 the carrying value was EUR 395 million in TUI AG’s consolidated balance sheet.