TUI: Preparations underway for a potential IPO of Hapag-Lloyd during 2011
07-Dec-2010 The Executive Board of TUI AG and the Board of Directors of Hamburgische Seefahrtsbeteiligung “Albert Ballin” GmbH & Co. KG (Albert Ballin) jointly explore options for a sale of shares in Hapag-Lloyd, one of the world’s leading container shipping companies, based in Hamburg, Germany.
The shareholders intend, to mandate the investment banks Credit Suisse, Goldman Sachs and Greenhill to commence preparations for a stock exchange listing. In parallel the search for strategic and financial investors interested in becoming core minority investors in Hapag-Lloyd will be continued.
Following the previously announced capital increase through a conversion of hybrid capital, as per the end of the year Hapag-Lloyd will be 50.2 per cent owned by Albert Ballin and 49.8 per cent by TUI. In 2008 TUI announced its intention to exit the container shipping business. A first step was taken in 2009 with the sale of a majority shareholding to Albert Ballin. The shareholders are now seeking long-term oriented investors to replace TUI to secure a stable shareholder base for Hapag-Lloyd.
Hapag-Lloyd has significantly increased its turnover and profitability in the current financial year, generating a turnover of 4,7 billion euro over the first nine months of 2010 and EBITDA of 744 million euro. As a consequence of this strong operational performance Hapag-Lloyd has been able to give back the government guarantee extended to it in 2009 and also during the course of 2010 was able to reduce debts owed to TUI and Albert Ballin by approximately 600 million euro. The company currently owns 59 ships and charters more than 70 further ships with a total capacity of 575,000 TEU. Hapag-Lloyd is currently ranked number 5 amongst the world's leading shipping lines.