TUI AG has welcomed the outcome of the Extraordinary General Meeting of First Choice shareholders. The merger of TUI AG’s tourism activities and First Choice Holidays PLC was approved of with a great majority. “This means that, following the go-ahead of the antitrust authorities, we have cleared the second hurdle on the way to TUI Travel PLC,” says TUI AG chief executive Dr Michael Frenzel. And continuing: “We will be creating one of the most profitable travel groups in the world. The biggest tourism platform in Europe will come into being with TUI Travel. Customers and shareholders will benefit from TUI Travel.”
Based on the figures of the 2006 financial year, a travel group with a turnover of around 18 billion euros (£12.1billion) and an underlying EBITA of around 500 million euros (£340 million) will be created under the umbrella of TUI Travel PLC. Last year, around 27 million holidaymakers travelled with the tour operators and airlines of TUI Travel PLC. Through the merger, the new company expects synergy potentials of around 150 million euros (£100 million) per annum, which should take full effect within three years of completion of the merger. A major part of the synergies is down to the British market.
As the companies move towards the merger, the key events are a final hearing at court on 31 August, the completion of the transaction, the listing on the London Stock Exchange and the first day of trading of the new shares on 3 Septem-ber.
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