TUI intends to approach Hapag-Lloyd buyers by June

German tourism and shipping conglomerate TUI AG, which announced last month that it would sell its container carrier unit Hapag-Lloyd, said Monday it has the clear aim of approaching potential buyers in late May/early June, after an information memorandum has been created.

In a letter to shareholders posted on its Web site Monday, TUI said a team led by Chief Executive Officer Michael Frenzel was running the process and has hired Deutsche Bank, Citigroup and Greenhill & Co. as advisors.

The divestment process is firmly focused on achieving the highest possible value for our shareholders, the letter said. We are absolutely firm in letting you, our shareholder, participate in the value we extract from the divestment process.

The company said that it had offered a seat on its supervisory board to John Fredriksen, the Norwegian shipping tycoon who has accumulated an 11.75 percent share in the company.

It has always been our belief that major shareholders should, if they so desire, have the opportunity to find representation in our Supervisory Board, the statement said, saying the offer was first made in January and still holds and can be implemented accordingly. However, it is important to note, that the supervisory board does not support a change in its acting chairman. We feel a public dispute over the constitution of our supervisory board is destructive in nature and not in the interest of the company and its shareholders.

The separation from our container shipping business is another important step for the TUI Group. Against the background of a positive operating trend in both businesses, we look forward to seeing you at our annual general meeting on May 7, the letter said. 

Source: Transportweekly