Mordashov increases stake in tourism joint venture with TUI to 75%

MOSCOW, October 23. The structure of Russian businessman Alexei Mordashov “Severgroup” agreed with the tourism company TUI Group to increase the share in the joint tour operator TUI Russia & CIS (“TUI Russia and CIS”) from 51% to 75%. The share TUI Group in the JV will be reduced from 49% to 25%. This is stated in the message of the TUI Group, about 13% which is also owned by Mordashov.

Loans and Bank guarantees made earlier in the framework of the JV, were reorganized under new ownership, the report says.

“Severgroup” an asset management Mordashov, also confirms the increase of share capital in “TUI Russia and CIS”.

As part of the deal “Severgroup” invests $17 million in assets “TUI Russia and CIS”, as well as provide short-term financing in the amount of $5.1 million TUI Group invests $3 million.

“The investment will be used to replenish working capital and to Fund further development on the main markets, including markets of domestic tourism in Russia”, – stated in the message “Severgroup”.

About TUI Russia & CIS

TUI Russia & CIS is a joint venture established on April 15, 2009, with the signing of the agreement between PL TUI Travel and S-Group Capital Management, controlled by Mordashov.

TUI Russia & CIS was established on the basis of Russian companies VKO Group, Mostravel and Ukrainian “Voyage Kiev”.

Russia has more than 500 travel agents under the brand TUI, open including franchising. The tour operator TUI Russia has more than 20 directions, serving more than 600 thousand clients.