Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  TUI AG    TUI1   DE000TUAG000

TUI AG

(TUI1)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: TUI in talks for up to 1.8 billion euros of extra state aid - sources

11/10/2020 | 11:41am EST
Outbreak of the coronavirus disease (COVID-19) in Stoke-on-Trent

BERLIN/FRANKFURT (Reuters) - TUI is in talks with the German government on an extra 1.5-1.8 billion euros (1.3 - 1.6 billion pounds) in state aid as two bailouts from earlier this year have not been enough for travel company to cope with the coronavirus travel slump, people close to the matter said.

The money could come from Germany's new economic stabilisation fund WSF and could include a mixture of equity and hybrid capital, the people said. They also said various options were still under discussion and no decisions had been taken.

Another person said that 1 billion to 2 billion euros in additional aid were under discussion.

TUI has already received a total of 3 billion euros of state-backed loans in two tranches this year. The current talks are focusing on strengthening the company's capitalisation, the sources said.

TUI said that after the renewed travel restrictions it was considering all options for its finances for the next few months, declining to comment on a possible third bailout.

The German government declined to comment.

TUI's largest shareholder, Russian billionaire Alexey Mordashov, who owns 25% of the London-listed company, had no immediate comment. Sources familiar with the situation have previously said he is expected to participate pro rata in a potential capital increase.

TUI has said it could issue new shares but clarified last month that it wanted to wait for its share price to recover before any capital increase. It also said asset sales were also an option to generate cash.

The company, which last year took 23 million people on holiday, lost 1.1 billion euros in the quarter through June after COVID-19 halted travel, wiping out revenue and straining its balance sheet as it burned through about 550 million to 650 million euros a month.

TUI's share price extended Monday's gains and was 4.4% higher by 1528 GMT as investors hoped that the arrival of a COVID-19 vaccine will help its business to recover.

"Monday's share price reaction shows that people believe in TUI's business model, which has been disrupted but not destroyed by government shutdowns," one of the people said.

The share price rise also means that in any state aid deal, TUI may be able to sell new shares to the government at the nominal value of 2.56 euros and may be able to avoid a prior reduction of the company's capital. The lowest possible price for any capital increase is the face value of the shares.

The government is seeking to buy new shares in TUI at a large discount as that would potentially allow an exit without losses at a later point in time, the people said.

A potential equity investment by the government would also help to safeguard an additional injection of non-voting capital dubbed silent participation by the government, they added.

In Lufthansa's 9 billion euro bailout earlier this year, the government bought new shares worth up to 25%, injected non-voting capital and granted loans through state bank KfW.

TUI is expected to report financial results for its full fiscal year next month.

(Editing by Maria Sheahan and Jane Merriman)

By Klaus Lauer, Michael Nienaber and Arno Schuetze


© Reuters 2020
All news about TUI AG
01/22EUROPE : European stocks sapped by weak economic data, travel curbs
RE
01/22TUI : Notifications according to 19 MAR – Friedrich Joussen
PU
01/22TUI : Notifications according to 19 MAR – Alexey A. Mordashov
PU
01/22TUI AG : Notification and public disclosure of transactions by persons dischargi..
DJ
01/22TUI AG : Notification and public disclosure of transactions by persons
EQ
01/22TUI AG : Cancellation of trading of Subscription -2-
DJ
01/22TUI AG : Cancellation of trading of Subscription Rights settled in the form of D..
EQ
01/22TUI AG : Cancellation of trading of Subscription Rights settled in the form of D..
DJ
01/22European stocks sapped by weak economic data, travel curbs
RE
01/21TUI : Mordashov Family
PU
More news
Financials
Sales 2021 13 009 M 15 831 M 15 831 M
Net income 2021 -573 M -697 M -697 M
Net Debt 2021 4 821 M 5 867 M 5 867 M
P/E ratio 2021 -17,4x
Yield 2021 -
Capitalization 4 359 M 5 306 M 5 304 M
EV / Sales 2021 0,71x
EV / Sales 2022 0,49x
Nbr of Employees 34 677
Free-Float 73,7%
Chart TUI AG
Duration : Period :
TUI AG Technical Analysis Chart | TUI1 | DE000TUAG000 | MarketScreener
Technical analysis trends TUI AG
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 11
Average target price 2,84 €
Last Close Price 3,97 €
Spread / Highest target 31,1%
Spread / Average Target -28,4%
Spread / Lowest Target -74,8%
EPS Revisions
Managers and Directors
NameTitle
Friedrich Peter Joussen Chief Executive Officer
Dieter Zetsche Chairman-Supervisory Board
Sebastian Ebel Chief Financial Officer
Frank Rosenberger Chief Information Officer & Head-Future Markets
Peter James Long Deputy Chairman-Supervisory Board
Sector and Competitors