Source:Tradewinds

Hapag-Lloyds' key shareholders have confirmed they will inject fresh funds into the struggling containership owner after it secured financing from the state last week.

TUI and the Albert Ballin consortium will push EUR 923m (1.36bn) into Hapag, to strengthen its capital base.

In a statement, TUI says it will invest EUR 124m into Hapag's planned capital increase, a sum which will enable it to retain its 43.3% stake.

Hanover-based TUI will also convert loans of EUR 700m into hybrid capital, of which EUR 350m can be converted into shares in 2011.

"TUI's stake in Hapag-Lloyd would amount to a maximum of 49.9% as a result of a potential exercise of the conversion right," the company said.

In addition, a recently sold stake in the Altenwerder container terminal will be returned to Hapag, with TUI converting its $215m fee for the terminal into hybrid capital. Albert Ballin, the Hamburg-based consortium, will repay EUR 25m to TUI on 31 March 2011

Analysts note TUI is shouldering a larger percentage of the rescue than Albert Ballin, but the spilt is largely in line with expectations.

Last Friday TradeWinds reported Hapag had finally won German government backing for a EUR 1.2bn ($1.75bn) package of loan guarantees.