Egyptian Mogul Rescues German Tour Operator Hit by Pandemic

(Bloomberg) --

Egyptian real-estate mogul Samih Sawiris has acquired majority control of tour operator FTI Group, infusing the German company with cash to help it weather the coronavirus travel shutdown.

Sawiris, founder and majority owner of hotels and resorts specialist Orascom Development Holding AG, lifted his stake in FTI Finanzholding, the holiday firm’s parent, to 75% from about a third, according to a statement Thursday.

Sawiris, one of three brothers who own the Orascom conglomerate, first bought into FTI in 2014. The investor, who owns resorts in Egypt and Switzerland, raised his stake through a share increase supported by German government guarantees.

Like tourism companies across the globe, Munich-based FTI has been hit hard by a collapse in travel as the coronavirus spreads. The company generated about 4.2 billion euros ($4.6 billion) in revenue last year, and is a large customer of German airline Condor. Its survival may help prevent a collapse in business at the carrier, whose rescue by LOT Polish Airlines SA fell through this week, leaving its fate in the hands of the German government.

Read more: Condor’s Future in Doubt After Poland’s LOT Drops Takeover Plan

Tour operators have been through a difficult stretch. Last year, Thomas Cook Group folded under the weight of debt, online competition and fickle demand impacted by terror attacks and military coups.

In March, Egyptian investor Hamed El Chiaty, chairman of tourism conglomerate Travco Group International Holding, became the second-largest shareholder in TUI AG, Europe’s largest tour operator.

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