Travel group TUI completes E1.1b capital increase

Travel company TUI Group has successfully completed a capital increase that raised about E1.1b to reduce pandemic-related debt, it said Thursday. TUI said the group’s share capital will increase nominally by around E523.5m to just under E1.623b as a result of the rights issue. It said 97.7% of the subscription rights were exercised with its largest shareholder, the Mordashov family, increasing its stake by around one percentage point to around 33%. The company will use the proceeds to repay part of more than E4b of government loans that it took out to stay afloat after COVID-19 stopped holidays in Europe for much of last year and the beginning of this year. A return of holiday travel within Europe this summer gave TUI the confidence to proceed with an equity raise, which it had said would leave it better placed to take advantage of the recovery.<br/>