TUI to sell off more non-tourism interests

TUI, the German owner of what was formerly Thomson Travel Group, is to float its Hapag Lloyd shipping business and sell off its other logistics companies so it can focus more closely on tourism. The company said the sale forms part of its aim to be come the “world’s leading tourism group.” Along with TUI in Germany and TUI UK (the former Thomson Travel Group) the company also owns the former Scandinavian Fritidsresor group, now called TUI Nordic (Fritidsresor, Star Tour, TEMA), and the airlines Hapag–Lloyd Flug and Britannia. The sale will reduce TUI’s net debt ”to well below Euro 2 billion” which it said would allow it to take ”advantage of growth opportunities” in its core tourism business. But when asked by TravelMole if the changes meant there would be more funds available for acquisitions, a spokeswoman said it “doesn’t mean that we want to buy anything.” The company will float about one-third of the shares of the cruise and container shipping business Hapag Lloyd during the second half of this year. The changes will mean that tourism will contribute about 85% of the company’s total earnings, compared to 75% currently. The spokeswoman added: “They want to reduce their debt which will increase their financial rating which will make them more attractive [and allow them to] negotiate better deals.”