With the German Government as a Stakeholder, I am confident that TUI will survive the remainder of the pandemic and rebound to its pre pandemic level by next year Q3 -Q4. The general mood is that there is a pent up demand for travel and as soon as restrictions are lifted bookings will start pouring in. even our niche segment has had an increase in enquiries for the end of this year and the start of next.
No, just noticed it as an extra addition outside of one of my pies. I am sure they will send us all the details at some point
Apart from the 1-for-10 reverse stock split which has happened to my holdings in T212
I noticed TUI is not showing on Hargreaves this morning as been offered , a bit strange.
now that tui have done this reverse split from my understanding they can now raise money to pay off government loans. Does anyone know how this will be done and at what price?
Am not aware how reverse stock split raises money to pay off govt loans so will be interested in learning tbh
It doesnt raise money. But before they are allowed to raise money they had to do the reverse split, and now they have the green light to raise. However I cant find any details on this as I want to invest in TUI but will only do so if I can get a price below the dilution price
@Team212 below news came out today on sharecast via HL, I’ve got TUI with T212 and would like to know if we’ve been Offered the opportunity? - terrible idea buying TUI but that’s a separate topic.
Update
8:3 (8 New Shares for 3 existing shares). The subscription price of €5.55 per New Share represents a discount to TERP (theoretical ex-rights price) of approx. 39.85%.
The ex-date is 28.03, and we’ll provide access shortly after that. We’ll make sure to share additional information with eligible shareholders
Today’s 28th March, stock price has already dropped -50%. Any update would be greatly appreciated
Today is the ex-date. That means, if you were holding this morning, you will be eligible for the rights.
You will be able to buy 8 shares for every 3 you own at a ~40% discount.
The price has dropped to reflect this.
Full details here: TUI AG announces launch of a €1.8bn capital increase for repayment of WSF state aid and significant reduction of the KfW credit lines to strengthen its balance sheet
Can anyone explain to me in Laymans terms what is going on with Tui today? Has there been a share split or something because I have not been informed of anything as a shareholder. All I see today is the share price devalued by nearly 50%. Am I going to be allocated additional shares to compensate for this or something? There Has been no info about a chance to buy shares at a discounted price.
At €5.55 /£4.88 per New Share, there’s a highly likelihood the share price coming down to £3.00 in the next few weeks.
Not sure whether to sit this one out and wait in the open market
You’ll get the details shortly with an option to opt in to buy discounted new shares. If it’s the same as previous rights offers, you’ll get a notification in-app and an email.
I’m interested to hear your thinking on a drop to £3.00?
Thanks for the info.
Hunch and observation of past right issue with TUI at the time
Hey, everyone
A quick update - we’ve just sent out notifications to all eligible shareholders with more information on the rights issue. Let me know if you have any additional questions
Hi Monchil,
The offer I have re these rights states at the bottom “ If you do not take any action before 10/04/2023 it will be considered as a permission to sell the rights on the market on your behalf.”
What exactly does this mean if I do nothing? Are the shares which I have rights to going to be sold at the open and will I receive the sale proceeds as cash into my account? If so, will the shares be sold at the market price , or at the preferential price of the offer? Or do I simply lose the entitlement to the shares? What happens to the shares I currently hold?
What is the potential benefit of paying for the shares rather than just doing nothing? Frankly I’m not convinced about throwing more cash at TUI but I do want my losses back.
Really confused by this. All I see is my holdings are down by over 50% since last Friday. Any info gratefully received.
If you decide to do nothing and not apply for the rights issue, your rights will be sold, and you will receive the proceeds straight into your Trading 212 account.
This will not affect your current holdings in any way. Once the transaction is complete, we will send an in-app notification to all shareholders that didn’t participate with additional details on the price at which the rights were sold.
One of the benefits for existing shareholders is they are given the opportunity to purchase shares at a lower price on or before a specified date. It’s worth noting companies most commonly issue a rights offering to raise additional capital. As more shares are issued to the market, the stock price is diluted and may go down, as is the case with TUI currently.
Hi Monchil,
That is very helpful and answers all very comprehensively. Many thanks.