First Choice Holidays PLC and TUI AG publication of prospectus
| Service |
PDFLondon/Hanover, 29 June 2007
The Boards of First Choice Holidays PLC (“First Choice”) and TUI AG announce that the prospectus for TUI Travel PLC prepared for the purposes of the proposed merger of First Choice and the Tourism Division of TUI AG (“TUI Tourism”) has been published today. The prospectus and the circular relating to the proposed scheme of arrangement (the “Scheme”) of First Choice will be posted to shareholders next week.
The merger remains subject to a number of conditions, including the approval of First Choice shareholders, approval of the Scheme by the Court and listing of TUI Travel PLC shares.
First Choice shareholders will be sent a circular setting out full details of the Scheme, together with the prospectus. The prospectus contains further information on First Choice, TUI Tourism and TUI Travel PLC, inclusive of a trading update.
Current trading and prospects for TUI Tourism
Trading for the financial year 2007 is in line with the Board’s expectations. Overall demand in the travel market remains strong, with varying levels of growth in demand across TUI Tourism’s source markets.
Overall, bookings for the 2007 Summer season have started well, with customer numbers up 7.8 per cent. and booked revenues up 2.8 per cent. year-on-year, as at 22 June 2007. The Central Europe Sector, which includes the large German source market, recorded a good increase in bookings, although the Sector’s results are affected by start-up costs in connection with the restructuring of flight operations under the new brand TUIfly.com. Customer numbers and booked revenues have also increased in the Western Europe Sector, although the Northern Europe Sector has experienced a decline year-on-year due to difficult market conditions in the UK and Ireland.
Current trading and prospects for First Choice
Trading for the financial year 2007 has been in line with the Board’s expectations. For the 2007 Summer season, the Mainstream Holidays Sector has performed in line with management expectations in what remains a challenging market. As at 24 June 2007, revenues were cumulatively up four per cent. on volume growth of one per cent., with overall capacity flat on 2006. Capacity in the short-haul market has been reduced by five per cent., with revenues down seven per cent. on lower volumes of five per cent. Within the medium-haul segment, where capacity has been maintained at 2006 levels, both revenues and volumes are flat. The long-haul segment has experienced strong demand, with capacity up by 25 per cent. and revenues up by 26 per cent. on volume growth of 22 per cent.
The Specialist Holidays Sector has had an excellent start to the 2007 Summer season across all its businesses, with sales and volumes as at 24 June 2007 up 18 per cent. and 16 per cent., respectively, on 2006 as a result of increased demand for lifestyle and destination specialist products.
In the Activity Holidays Sector, Summer revenues were up five per cent. as at 24 June 2007, as the Sector continues to perform in line with the Board’s expectations. Revenues were up seven per cent. in the Adventure business and up two per cent. in the Marine business, on a like-for-like basis. Margins are currently slightly ahead of last year for the Summer programme.
In the Online Destination Services Sector, all routes to market as at 24 June 2007, continue to grow and are performing well, with sales and bednights up 50 per cent. and 30 per cent. respectively, with margins also ahead of last year. The integration of laterooms.com is progressing as planned, as the business enjoys strong demand for late availability bedstock, with sales and volumes up 78 per cent. and 73 per cent. respectively.
Timetable
The timetable of principal events will be as follows:
First Choice shareholder meetings: 25 July 2007
Final court hearing to sanction Scheme / reduction of capital: 31 August 2007
Expected date of completion, listing of TUI Travel PLC shares: 3 September 2007
and commencement of dealings
The prospectus is also available on the TUI AG website at www.tui-group.com
Contact:
Björn Beroleit, phone +49 (0)511 – 566 1310
Nicola Gehrt, phone +49 (0)511 – 566 1435
If we comment on forecasts or expectations in this announcement or if our statements relate to the future, these statements may be associated with known and unknown risks and uncertainties. Actual outcomes and developments may, therefore, deviate significantly from the expressed expectations and assumptions. In addition, the performance of financial markets and exchange rates as well as national and international law amendments, particularly with regard to tax regulations, may have an influence. Except as provided by law, the company assumes no obligation to update future statements.