TUI sells off Hotelbeds Group for 1.2 bn euros
German tourism giant TUI said it has agreed to sell off its Hotelbeds unit to two investment funds for 1.2 billion euros ($1.4 billion).
"TUI has reached an agreement with UK investor Cinven Capital Management and Canada Pension Plan Investment Board to sell Hotelbeds Group for around 1.2 billion euros," the German group said in a statement late Wednesday.
Hotelbeds describes itself as the number one bedbank worldwide, offering hotel capacity to travel agencies and tour operators in more than 120 countries.
"This is a very successful transaction -- a good deal for the future of Hotelbeds and for TUI Group shareholders as well as our continued growth in our core tourism business," said chief executive Fritz Joussen.
"There were numerous bidders for Hotelbeds Group. Following intensive negotiations, we decided to sell Hotelbeds to Cinven Capital Management and Canada Pension Plan Investment Board."
The transaction was still subject to the relevant regulatory approvals and expected to complete by end of September 2016, TUI said.
© 2016 AFP