Tui injects herself a daughter: tourism giant arises – n-tv.de NEWS

Tui injects herself a daughter: tourism giant arises – n-tv.de NEWS

Economy
 

 Monday, September 15, 2014

 
 
 

 
 Tui is serious and swallows its British subsidiary. To allow management eliminates a design flaw in the Group structure. Stockbrokers and analysts believe this is a good idea.
 

 

Europe’s largest tour operator Tui has made the perfect fusion with its British subsidiary Tui Travel. This creates the world’s largest tourism group. The headquarters will be in Germany, the Hanoverian company said. The company should be be listed on the London Stock Exchange, in Germany a secondary listing is planned.

Charts
 
 

The owner of Tui Travel get 0,399 new Tui AG shares for each share. They will make a 46 percent share and the Tui AG shareholders holding a stake of 54 percent in the combined company. After the merger, the company had a value of 6.5 billion euros, it said in a statement. Currently Tui holds over half of the shares in Tui Travel.

Tui-chief Friedrich Joussen had the plans presented at the end of June. With the step he wants to eliminate an imbalance in the current group structure. The actual core travel business with 95 percent of sales are not driven by Tui, but is located at the daughter Tui Travel UK since 2007. Tui is the largest holiday hotelier in Europe.

Growth in view

reasons for the merger were the improved growth and assured future prospects, as Tui. In addition, a higher utilization of the hotels and cruise ships, significant synergies and cost savings of at least 45 million euros a year are possible.

More on the topic
 
 
 

“It fits,” said one market players Frankfurt. There, the Tui share lost slightly in value, while Tui Travel in London rose by more than 4 percent. The costs associated with the merger benefits have not yet been priced, according to analysts at Credit Suisse. The hotel division of Tui should come on revenue of 30 million euros after the merger. Furthermore, it is likely to cost and tax savings of around 80 million euros. For the business, the non-core area, the Credit Suisse expects restructuring, divestitures or settlement, which could promote hidden reserves to days.

  Source: n-tv.de