TUI Shareholder Fredriksen To Sell Down Stake

February 19, 2014

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TUI shareholder and Norwegian shipping magnate John Fredriksen will sell a 15.7 percent stake in the German travel and tourism group, benefiting from a rise in the price of its shares.

Fredriksen increased his stake in TUI to over 20 percent and simultaneously sold his stake in the group's TUI Travel unit in November. At the time, his aide said the move meant Fredriksen had strengthened his influence should he decide to renew efforts to merge the two companies.

Since he increased his stake in November, TUI shares have risen by 35 percent as a turnaround took effect and the announcement of a first dividend since 2007 attracted investors.

Fredriksen's vehicle Monteray Enterprises will sell 39.7 million ordinary shares, via a placing to institutional investors, book-runner Goldman Sachs said in a statement.

At Wednesday's close of €13.75, the stake was worth EUR€546 million (USD750 million). Fredriksen spent EUR€83 million on increasing his stake in November at an average share price of €10.37.

The price of the placing will be determined via an accelerated book-building process to start immediately.

The sale will leave Fredriksen, who was the group's second largest shareholder, with a 4.4 percent stake in TUI.