Helloworld Limited to merge with AOT Group

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After extensive talks, Helloworld Limited (ASX:HLO) has today announced it will merge with AOT Group Limited (AOT) to create a single, more competitive travel company.

Following the resignation of HLO chief executive officer Elizabeth Gaines in June, AOT CEO Andrew Burnes will assume the position of CEO and managing director of HLO at the completion of the transaction.

Structured as HLO’s acquisition of AOT on a cash- and debt-free basis, the transaction’s consideration totals 218.7 million HLO shares and AU$25 million in cash.

Privately owned AOT provides travel services in the inbound, corporate/government and leisure sectors throughout Australia and the world.

In the 2014/15 financial year, AOT generated a revenue of AU$55.8 million.

HLO says AOT’s strong management across the aforementioned sectors will help bolster HLO’s existing travel business.

Combined with Mr Burnes’ existing 10.3 per cent share, AOT venders will hold 40 per cent of HLO shares at the completion of the transaction.

Major shareholders Qantas and Europe Voyager, who collectively hold in excess of 50 per cent of HLO shares, have confirmed they intend to vote in favour of the transaction, unless a more superior proposal arises.

Source = ETB Travel News: Brittney Levinson
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