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The T UI
Group purchases the cruise ship Europa 2, taking a strategically and
commercially important investment decision for the Group and its Hamburg-based
subsidiary Hapag-Lloyd Kreuzfahrten. Europa 2, TUI AG said in a statement.
"The purchase from current owner, Swiss businessman Otto Mihm, was first
reported by German daily Frankfurter Allgemeine Zeitung (FAZ), in an advance
copy of an article to be published today (Friday).
"The
transaction will replace the previous charter agreement of the ship which was
newly commissioned in 2013. The profitability of the Group’s Division Hapag-Lloyd
Kreuzfahrten will already be significantly increased in the current financial
year 2014/15. The purchase price for the ship totals 278 million euros. It
consists of a cash component of around 67 million euros payable to the previous
owner and the assumption of 211 million euros of debt.
Fritz Joussen, CEO of the TUI Group: “The acquisition of the Europa 2 enables us
to achieve further improvements in the results of Hapag-Lloyd Kreuzfahrten. We
expect the transaction to already create positive earnings effects in the
current financial year and improve EBITA at Hapag-Lloyd Kreuzfahrten from
financial year 2015/16 by around 20 million euros per annum versus the charter
arrangement.“
At its annual press conference held in December 2014, TUI had already announced
that Hapag-Lloyd Kreuzfahrten was expected to achieve a turnaround in the
current financial year – under the terms and conditions of the existing charter
agreement for the cruise ship. Following the merger between TUI AG and TUI
Travel in December 2014, the long-term growth of the new TUI Group is
additionally to be supported by a flexible asset-right business model.
The ownership structure of the existing and new hotels and cruise ships will be
optimized in order to enhance the efficiency of operations and increase the
value of the assets. The purchase of EUROPA 2 constitutes a key milestone in
this context and increases efficiency.
The Hapag-Lloyd Kreuzfahrten Division has achieved an excellent operating
performance in the past 18 months. When the initial start-up difficulties
following the commissioning of the new ship had been overcome, EUROPA 2
developed and convinced its own clientele in the luxury segment.
About TUI
TUI
AG, the world's largest tour operator, is reported to be buying luxury cruise
ship Europa 2 for €278 million in cash and debt to bolster results at its Hapag-Lloyd
Kreuzfahrten, its luxury and destinational market cruise unit. The Hamburg based
cruise shipping company has operated the vessel on charter so far.
Europa 2 was built in France in 2013 and it can take 516 passengers. The ship
has a gross tonnage of 42,380. It caters for families and targets the luxury
segment of the cruise market.
The group is trying to improve results at the loss-making Hapag-Lloyd cruise
unit which it hopes will break even in the current 2014/15 business year. By
contrast, TUI Cruises, of which TUI AG owns 50%, has been highly profitable.
The deal meant Tui would be able to save charter rates of around €27 million a
year and would improve profit in the 2015/16 business year by around €20
million. |
