(Alliance News) - Travel holiday firm Tui AG is poised to announce plans to secure between EUR700 million and EUR1 billion in an equity raise, German language publication Handelsblatt reported on Wednesday.
Handelsblatt reported that Chief Executive Officer Friedrich Joussen plans to finalise terms of the equity raise by the end of September.
https://www.handelsblatt.com/unternehmen/dienstleister/reisekonzern-in-der-krise-kapitalerhoehung-geplant-tui-bittet-aktionaere-zur-kasse/26189428.html
Earlier in September, Tui said holders of its senior notes due October 2021 agreed to suspend potential future limitation of the company's debt, a key term of the firm's EUR1.2 billion support package from German state-owned bank KfW and a consortium of other institutions.
The rescue package was announced back in August, easing pressure on Tui which has been hit by Covid-19 lockdown measures which crippled demand, docked cruise liners and emptied skies.
Tui in May had said it is looking to permanently reduce its cost base by 30% - which the firm explained will result in 8,000 jobs "either not being recruited or reduced".
Earlier on Wednesday, the UK's competitions regulator said Tui will refund all customers whose trips were cancelled due to Covid-19 by the end of September.
The Competition & Markets Authority investigated the Anglo-German firm's UK arm after it received "thousands of complaints" from customers who said they did not receive refunds for cancelled holidays within 14 days, in line with consumer protection law.
Tui shares slumped 6.0% to 317.40 pence each in London on Wednesday.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
TUI AG (TUI)