Holiday giant Tui weighs up cash call from investors

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Holidays giant Tui considering tapping investors for hundreds of millions of pounds

By Jamie Nimmo, Financial Mail On Sunday

Published: | Updated:

Holidays giant Tui is considering tapping investors for hundreds of millions of pounds. 

A major equity fund-raise is one of the options under consideration if people are slow to start going on holiday again once the lockdown eases, sources said. 

The tour operator, which has secured a £1.6 billion bridging loan from the German government, said last week that it had enough cash for the coming months. 

Planning ahead: If the lockdown is not eased and if bookings do not recover then Tui may look for a cash injection by issuing new shares.

But if the lockdown is not eased and if bookings do not recover then it may look for a cash injection by issuing new shares. 

Major investment banks UBS and Citi have tipped the tour operator to raise more money as it faces what it describes as unquestionably the industry’s greatest crisis. 

Last week, the company revealed it made a £650 million loss in the first three months of the year and said up to 8,000 jobs could be cut in an effort to reduce costs. 

TUI said it has ‘sufficient funds to cover the coming months’, but added: ‘We are evaluating a variety of options with the aim to best position TUI’s balance sheet and liquidity through an extended period of disruption and post crisis.’ 

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