Oct. 12 (Bloomberg) -- TUI AG, the German owner of Europe's largest travel company, agreed to sell Hapag-Lloyd to a Hamburg- based investor group in a deal that values the shipping company at 4.45 billion euros ($6 billion).

TUI plans to buy back about 33 percent of Hapag-Lloyd for 700 million euros and pay a special dividend to investors with the proceeds, Hanover, Germany-based TUI said today in a statement. The amount of the dividend will be determined after the end of the year.

``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 Officer Michael Frenzel said in a statement. ``Selling only two thirds of Hapag- Lloyd has made this price possible.''

The tourism company said proceeds from the sale will open up opportunities to expand, including buying outstanding shares of Crawley, England-based TUI Travel Plc, the No. 1 in Europe.

The Hamburg group, led by the city's government and logistics billionaire Klaus-Michael Kuehne, was the sole remaining bidder after Neptune Orient Lines Ltd. dropped out on Oct. 10. TUI initiated the sale in March, giving in to investor pressure to focus on tourism.

The deal is the biggest in the shipping industry since A.P. Moeller-Maersk A/S, the world's largest shipping line, bought Royal P&O Nedlloyd NV for 2.3 billion euros in 2005. It comes as the ocean freight industry confronts an increase in the supply of new vessels, climbing fuel prices, and global trade slowed by the financial crisis.

Pressed to Halt

TUI investors, among them Norwegian billionaire John Fredriksen, have pressed the company to halt the sale as shipping operators confront higher fuel costs and slowing global economic growth. Container lines recently scrapped plans to impose a $150 peak season surcharge on Asia-Europe boxes because of weak demand, Lloyd's List said on Aug. 15.

The investor group, called Albert Ballin KG after a famous Hamburg ship owner, bid for the company to secure jobs and an important part of the city's maritime history.

The group consists of the city of Hamburg, Kuehne, private investment bank M.M. Warburg & Co., regional bank HSH Nordbank AG, and insurers Signal Iduna and Hanse Merkur.

``With the acquisition we achieved our goal of keeping Hapag-Lloyd as an independent shipper based in Hamburg,'' Christian Olearius, head of M.M. Warburg said in a statement. ``We will further develop the shipper and expand its market share.''

Hapag-Lloyd moved about 2.8 million 20-foot containers this year through June. Of that total, it moved 705,000 boxes on the Atlantic route, according to the company's Web site. Almost 90 percent of global trade moves by sea.

TUI said the other shareholders have the right of first refusal if it decides to sell shares. The first opportunity to sell additional shares in Hapag-Lloyd is Jan. 1, 2012.

To contact the reporter on this story: Chris Reiter in Berlin at creiter2@bloomberg.net

Last Updated: October 12, 2008 14:06 EDT