With everything that is happening around the world with the pandemic shutting economies down people are still making the deals that make them their money. Businessmen are making deals to keep their companies afloat and their employees paid.
Hotel chains are looking for excuses to keep running and investors who are willing enough to invest in the property or buyers willing to buy the property. But this does not seem to be working as most people have lost money dues economies falling.
The TUI Group of companies has been going back and forth on a deal that they finally concluded regarding the RIU Hotel chain. The company has been debating if it would like to sell a percentage of their shares to a co-owner of RIU and make a huge amount of off the sales share.
The group has come to the conclusion that they will sell 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.
