Hapag-Lloyd sold for $6 billion to German investors; Kuehne takes 25.1 per cent

Mumbai: German investor Klaus-Michael Kuehne's holding company has picked up a 25.1 per cent stake in container shipping group Hapag-Lloyd as the Hamberg-based TUI AG sold its shipping subsidiary to a group of German businessmen for around €4.45 billion ($6 billion).

A consortium of Hamburg businessmen, backed by the city council, won the bid to acquire Hapag-Lloyd  the world's fifth-largest container shipping group, after Singapore's Neptune Orient Lines dropped out of the auction at the end of last week.

TUI chief executive Michael FrenzelUnder the deal, TUI would take a 33 per cent stake in the consortium's bid vehicle in a transaction valued at €700 million, and Kuehne said, the investor group would be interested in buying should TUI decide to sell.

TUI had weighed several options, including forging new alliances with other shipping companies, Kuehne said without naming any.

''Despite an adverse environment, the price we have achieved for container shipping reflects its fair value even under normal market conditions,'' said TUI chief executive Michael Frenzel.

According to Frenzel, the deal was made possible by its decision to sell only two-thirds of Hapag-Lloyd and retain the remaining.