Saranja S.L. signed an agreement to acquire 49% stake in RIU Hotels & Resorts from TUI AG (XTRA:TUI1) for approximately 670 million on May 27, 2021. The expected net cash consideration pre earn-out amounts to around 540 million at closing of the transaction. The earn-out-element is payable upon RIU Hotels S.A. delivering its FY 2022 and 2023 operating budget. CaixaBank financed the Riu Group with 825 million for the acquisition of 49% of 19 hotels owned by TUI Hotel. For the year ended September 30, 2020, RIU Hotels S.A. generated a total revenue of 226 million, an underlying EBIT of 28 million, Net Income of 10 million. The transaction is subject to final financing agreements and certain regulatory approvals. The transaction is approved by the Supervisory Board of TUI AG. The proceeds will be used to reduce the TUI AG's Corona debt. The transaction is expected to complete in late summer 2021. The transaction is expected to generate a considerable book gain for TUI. Lazard Frères & Co. LLC acted as financial advisor to TUI. Helge Schäfer and Jonas Wittgens of Allen & Overy LLP acted as legal advisor to TUI. Wilhelm Reinhardt of Gibson, Dunn & Crutcher LLP acted as legal advisor to Lazard Frères & Co. LLC.
Saranja S.L. completed the acquisition of 49% stake in Riu Hotels S.A. from TUI AG (XTRA:TUI1) on July 30, 2021. TUI has received an initial purchase price payment of 541 million today and can receive an additional earn-out of around 130 million until 2023. The proceeds will be used to reduce the TUI's Corona debt.