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UPDATE 1-TUI AG completes sale of Hapag-Lloyd unit
March 23, 2009 / 3:54 PM / 9 years ago

UPDATE 1-TUI AG completes sale of Hapag-Lloyd unit

* TUI finally sells container shipping unit to Hamburg group

* Says keeps stake of 43.3 pct stake in Hapag-Lloyd

* Gets 1.6 bln eur in proceeds from sale

* TUI shares rise 5.9 percent in firm market

(Adds details and background)

FRANKFURT, March 23 (Reuters) - German tourism group TUI AG (TUIGn.DE) completed a drawn-out process to sell its container shipping unit Hapag-Lloyd to a group of Hamburg-based investors on Monday after making special concessions to rescue the deal.

TUI agreed in October to sell Hapag-Lloyd to the investor group for an enterprise value of 4.45 billion euros ($6.07 billion), but the financial crisis threw a spanner in the works.

TUI ended up keeping a larger than initially planned stake in Hapag-Lloyd of 43.3 percent and also agreed to provide additional credit facilities of up to 1.1 billion euros for a limited time to secure the unit’s financial stability.

In return, TUI will get 1.6 billion euros in liquidity for the sale, 400 million short of what it had originally expected.

TUI shares were up 5.7 percent at 4.145 euros at 1548 GMT, outperforming a 1.2 percent gain in Germany’s mid-cap index .MDAXI. (Reporting by Eva Kuehnen)

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