Holiday company TUI Group has said that it has agreed to sell its 49% stake in Spain's RIU Hotels SA to co-owner RIU Group in a deal that gives the joint venture an enterprise value of €1.5 billion.
TUI said that the expected net cash consideration for the sale stands at €540 million, and added that including an earn-out-element - payable once RIU Hotels SA delivers its budgets for 2022 and 2023 - it will grow to €670 million.
The transaction, which TUI said will generate a considerable book gain, is expected to be completed in late summer 2021. Proceeds will be used to cut debt which increased significantly during the Corona pandemic.
50/50 Hotel Joint Venture
TUI said a separate and long-standing 50/50 hotel joint venture with RIU - including 100 hotels and resorts around the world - will be unaffected by the deal.
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