TUI to sell Hapag-Lloyd shipping unit for $6.04 bn
German tourism company TUI AG said on Sunday it will sell its marine shipping unit Hapag-Lloyd to a consortium of investors in a euro4.45 billion ($6.04 billion) deal.
By Agencies |
FRANKFURT: German tourism company TUI AG said on Sunday it will sell its marine shipping unit Hapag-Lloyd to a consortium of investors in a euro4.45 billion ($6.04 billion) deal.
TUI's supervisory board came to the decision in a special session in Hannover on Sunday.
Investors in the consortium include Klaus-Michael Kuehne, the majority holder of Swiss logistics company Kuehne + Nagel, the city of Hamburg where Hapag-Lloyd is based and private bank M M Warburg.
``We have, despite the adverse market environment, received a fair price for the container shipping operations,'' said TUI board chairman Michael Frenzel.
TUI said in March that it planned to split off Hapag-Lloyd, which has a fleet of about 130 container ships, as it concentrates more on its tourism operations.
According to the terms of the deal, TUI said in a statement that Hapag-Lloyd will be sold to a subsidiary of the consortium called Albert Ballin GmbH & Co. KG, and then TUI will purchase a 33.33 percent stake in that company for euro700 million ($950.53 million). It did not give further details.
The deal, which is still subject to regulatory approval, comes after marine shipping company Neptune Orient Lines said Friday it had pulled out of bidding for Hapag-Lloyd.
Singapore-based NOL submitted a bid for Hapag-Lloyd on Sept. 26, but said it had lapsed. It did not give details of the offer.
NOL's announcement came after shares of TUI closed down nearly 9 percent to euro8.76 euros (US$11.74) Friday on a broadly depressed Frankfurt market.
TUI's supervisory board came to the decision in a special session in Hannover on Sunday.
Investors in the consortium include Klaus-Michael Kuehne, the majority holder of Swiss logistics company Kuehne + Nagel, the city of Hamburg where Hapag-Lloyd is based and private bank M M Warburg.
``We have, despite the adverse market environment, received a fair price for the container shipping operations,'' said TUI board chairman Michael Frenzel.
TUI said in March that it planned to split off Hapag-Lloyd, which has a fleet of about 130 container ships, as it concentrates more on its tourism operations.
According to the terms of the deal, TUI said in a statement that Hapag-Lloyd will be sold to a subsidiary of the consortium called Albert Ballin GmbH & Co. KG, and then TUI will purchase a 33.33 percent stake in that company for euro700 million ($950.53 million). It did not give further details.
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The deal, which is still subject to regulatory approval, comes after marine shipping company Neptune Orient Lines said Friday it had pulled out of bidding for Hapag-Lloyd.
Singapore-based NOL submitted a bid for Hapag-Lloyd on Sept. 26, but said it had lapsed. It did not give details of the offer.
NOL's announcement came after shares of TUI closed down nearly 9 percent to euro8.76 euros (US$11.74) Friday on a broadly depressed Frankfurt market.
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