Norwegian shipping magnate John Fredriksen is increasing his shareholding in Europe’s largest tour operator Tui AG to more than 20%.
At the same time he is selling his entire stake in its Tui Travel subsidiary.
Fredriksen’s aide Tor Olav Troim told Reuters that not only had Fredriksen made money with the deal, he had strengthened his influence in Tui AG should he decide to renew efforts to merge the two companies.
“By increasing our stake in Tui AG we are strengthening our hand in the discussions about the future strategy,” Troim said.
“Our goal is to create an integrated tourism group. A merger of Tui AG and Tui Travel is an option.”
Fredriksen’s 5.4% stake in Tui Travel was sold at 366p a share, valuing the stake at around £220 million.
“Tui AG shares were trading to a clear discount to Tui Travel shares. We took advantage of that”, Troim said, adding Fredriksen made $150 million on the investment.
Fredriksen and Russian tycoon Alexey Mordashov, who owns 25% in Tui AG, had earlier this year discussed a possible nil-premium, all-share merger of with majority-owned unit Tui Travel to cut costs and strengthen its focus on tourism.
The two shareholders at the time discussed a tie-up via a so-called “reverse takeover” of Tui AG by Tui Travel. But Tui AG decided against an offer for the rest of Tui Travel, saying it was not attractive at current share prices.
Troim said: “Unlike in the past, we have a very good dialogue with shareholder Mordashov. We also have strong faith in the executive and supervisory boards of Tui AG and Tui Travel.
“We want to have good discussions in a constructive atmosphere. We have an open agenda.”
Fredriksen had unsuccessfully tried to oust Tui AG’s chairman in 2008 and 2009 and called for a replacement of Michael Frenzel as chief executive, who resigned earlier this year after 19 years at the helm of the company.