News

17 Jun 2008

Chief Executive Michael Frenzel is making an Asian tour to market container shipping business Hapag-Lloyd, which the German group has put up for sale, a source familiar with the situation said. Frenzel will meet potential suitors in Singapore, Hong Kong and Tokyo to hand over a sale prospectus, the source said. TUI said only that it would be sending out the information packet on Hapag-Lloyd, the world's fifth-biggest container shipping business, this week Under pressure from activist shareholders, Frenzel has agreed to ditch TUI's twin-pillar strategy of tourism and shipping. He is now sounding out potential buyers for the shipping business, which has 140 ships and generated 6 billion euros ($9.22 billion) in sales last year.
Analysts say the business could be worth up to 5 billion euros.
Frenzel is set to meet Neptune Orient Lines in Singapore, the source said. NOL, part of state holding company Temasek, has already been in talks on Hapag-Lloyd and is seen as one of the top bidders.
NOL is the world's eighth-biggest container shipping group. Its 120 ships generated sales of over $8 billion last year, primarily on Pacific routes that would round out Hapag-Lloyd's focus on Atlantic and Europe-Asia routes.
Frenzel is prepared to meet Orient Overseas (OOCL), the world's ninth-biggest shipper, in Hong Kong, the source said.