Dec. 13 (Bloomberg) -- TUI AG, the German owner of Europe’s largest travel company, said its executive board resolved to sell most of its stake in the Hapag-Lloyd AG container-shipping business to majority owner Albert Ballin.
TUI will tender a 33.3 percent holding in Hapag-Lloyd to the Hamburg-based group, to which it sold a majority stake in the container-shipping company in March 2009. The travel company still owns 38.4 percent and will use a contractually agreed exit right that must be exercised by Jan. 2, TUI said in a statement.
“Our exit from container shipping was set down more than three years ago with all partners in the Hamburg-based consortium,” TUI Chief Executive Officer Michael Frenzel said in today’s statement. “In the current year, we have already reduced our invested capital by 1 billion euros ($1.3 billion). Exercising our tender right is now the next consistent step.”
TUI shares jumped as much as 5.6 percent in Frankfurt and were up 3.1 percent at 3.91 euros at 1:04 p.m. TUI Travel Plc, Europe’s largest travel company that’s controlled by TUI, rose as much as 3.8 percent to 158 pence in London.
TUI said it will be entitled to sell “the majority” in Hapag-Lloyd to third-party investors should a sale contract with Albert Ballin not be drawn up by the end of September 2012.
--Editors: Paul Jarvis.
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