FRANKFURT (Reuters) – Holiday group TUI said on Wednesday it raised about 425 million euros ($447 million) in its capital increase to pay back parts of a German state bailout it had received during the pandemic.
TUI had taken on loans of 4.3 billion euros and been bailed out multiple times by the German government as COVID stopped holidays, but it aims to make a profit again in 2022 as people jumped to book long-awaited tours amid lifted restrictions.
The company said it placed the 162,291,441 new shares with institutional investors at 2.62 per share, 10% below Tuesday’s closing price, in its third capital increase since January 2021.
TUI’s Germany-listed stock was down 11.2% by 0845 GMT.
TUI had said it would use the proceeds and existing cash resources to fully repay the second instalment of a so-called silent participation of the German government and reduce outstanding credit lines by state lender KfW.
“The timing seems sensible, ahead of what should be a strong summer season, and before what could prove to be a more challenging winter,” the Stifel brokerage said.
($1 = 0.9511 euros)
(Reporting by Zuzanna Szymanska, Editing by Miranda Murray)