TUI Group announces it has completed an agreement to dispose of its remaining 10% shareholding in TUI Russia, to KN-Holding, the existing 90% shareholder of TUI Russia.

The disposal has been agreed for an off-set value of USD$11.9m, with TUI receiving a cash benefit from the repayment of a proportion of outstanding loans on closing of the agreement.

Going forward, TUI Russia intends to pursue a standalone digital transformation strategy and the TUI brand will continue to be used under a brand license agreement.

KN-Holdings LLC is wholly owned and controlled by Kirill and Nikita Mordashov and is the majority owner of Unifirm Ltd. Unifirm Ltd, according to its latest voting rights notification, owns approximately 30.1% of TUI Group and KN-Holding is therefore considered to be a related party.

The agreement falls within the FCA Listing Rules 11.1.10R and a sponsor’s written confirmation has been obtained stating that the agreement is fair and reasonable as far as TUI Group’s shareholders are concerned.