TUI AG TUI Russia & CIS Joint Venture (2810D)
October 23 2015 - 9:10AM
UK Regulatory
TIDMTUI
RNS Number : 2810D
TUI AG
23 October 2015
TUI Group
Reduction in Equity Participation and Additional Funding in TUI
Russia & CIS Joint Venture
TUI Group announces that it has entered into arrangements to
reduce its equity participation in TUI Russia & CIS, its joint
venture with SeverGroup, from 49% to 25%. At the same time,
Severgroup will increase their equity participation to 75%.
Shareholder loans and bank guarantees made previously to the joint
venture have been restructured to reflect the new equity
participation ratios. No additional consideration will be received
in respect of the reduction in TUI Group's equity
participation.
Immediately following this, both TUI Group and SeverGroup will
provide new equity investment in line with the new participation
ratios. TUI Group will provide new equity investment of net $3.0m
(EUR2.7m). Furthermore, certain payables by the joint venture to
TUI Group businesses will be deferred to provide short-term
financing of up to $4.9m (EUR4.4m) for the Winter 15/16 season.
Given the ongoing challenging trading environment for tour
operators located in the Russian and Ukrainian source markets these
arrangements are prudent as we enter into the off-peak Winter
period.
SeverGroup is wholly-owned and controlled by Russian
businessman, Alexey Mordashov, who, according to his last voting
rights notification, owns approximately 13% of TUI Group and who is
therefore considered to be a related party.
This arrangement falls within Listing Rule 11.1.10R and a
sponsor's written confirmation has been obtained stating that the
arrangements are fair and reasonable as far as TUI Group's
shareholders are concerned.
Dated: 23 October 2015
This information is provided by RNS
The company news service from the London Stock Exchange
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