German shipping, travel and tourism company TUI AG, is close to finalising a deal to sell part of its stake in container shipping company Hapag-Lloyd HPLG.UL to its majority shareholder, the Albert Ballin consortium.
TUI, which holds 38.4 per cent stake in Hapag-Lloyd, wants to sell 33.3 per cent in the container shipping giant to the Hamburg-based Albert Ballin consortium.
"Our exit from container shipping was set down more than three years ago with all partners in the Hamburg-based consortium. In the current year we have already reduced our invested capital by one billion euros. Exercising our tender right is now the next consistent step", said TUI CEO, Michael Frenzel.
In 2008, the Albert Ballin consortium and TUI acquired Hapag-Lloyd HPLG for €4.45 billion. TUI initially acquired 33.33 per cent stake in the company for €700 million and under the deal, it had the right to exit by selling its stake to the Albert Ballin consortium by 2 January 2012 at the latest.
The plan however was to keep the world's fifth-biggest container shipping company in German hands.
The Albert Ballin consortium is headed by businessman, Klaus-Michael Kühne, and has the government of Hamburg as a partner with a 35-per cent stake.