TUI reduces stake in Russian joint venture

Tourism services operator TUI Group has unveiled plans to reduce its equity stake in TUI Russia & CIS, its joint venture with Severgroup.

The FTSE 100 group said it has reduced its stake from 49% to 25%, while Severgroup will increase its equity participation to 75% and both companies will provide new investments in line with the new participation ratios.

TUI Group will invest £2.7m, while certain payables by the joint venture to TUI Group businesses will be deferred to provide short-term financing of £4.4m for the winter season.

“Given the ongoing challenging trading environment for tour operators located in the Russian and Ukrainian source markets these arrangements are prudent as we enter into the off-peak winter period,” the company said in a statement.

TUI shares were down 0.33% to 1,211.00p at 1534 BST on Friday.