TUI AG has sold part of its stake in shipping container giant Hapag-Lloyd and is considering offloading more through an initial public offering. The German company, which controls Tui Travel, has said it wants to invest proceeds from the IPO into its tourism business.
Tui AG, which owns 49.8% of Hapag-Lloyd, is selling an 11.33% stake for €315 million ($439 million). The price may rise by as much as €35 million if an IPO takes place, providing “certain conditions are met,” according to the company.
The deal will leave Tui AG with a 38.4% holding in Hapag-Lloyd worth €1.71 billion – a level likely to be raised through an IPO next month, according to analysts. TUI AG has been expected to use any proceeds from the sale of Hapag-Lloyd to fund taking a bigger stake in the FTSE-listed Tui Travel.
Hapag-Lloyd returned to profit last year as a rebound in global trade enabled it to raise container-carrying rates. The shipping line returned to a “position of strength,” chairman Michael Behrendt said in December.
The stake in Hapag-Lloyd has been sold to German investment group Albert Ballin.