TUI mulls equity raise but well below EUR1bn

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TUI AG (LON:TUI) said it is considering a potential equity raise but it would be “significantly lower” than the EUR1-1.5bn mentioned in the press.

The Anglo-German tour operator, which has been battered by the COVID-19 pandemic and worldwide travel restrictions, said it continues evaluating measures to support its balance sheet and maturity profile.

READ: TUI takes 1.4mln customers on holiday during summer

The FTSE 250-listed firm added it has not yet decided whether the equity raise will go ahead, nor its timing and volume.

Last month TUI announced it was going ahead with a savings programme to cut its overhead cost base by 30%, which will potentially hit 8,000 roles globally that will either not be recruited or reduced.

As of September 20, cash and available facilities, including additional stabilisation package, were EUR2bn.

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