British Airways today announced that it has entered into an agreement with Galileo International Inc under which British Airways will sell Britair Acquisition Corp. Inc., a 100% owned British Airways subsidiary that indirectly holds 7,000,400 common shares of Galileo International Inc.
The net sales proceeds will be US$307.7 million. At an exchange rate of U$1.60 =£1, the disposal will realise a British Airways profit before tax in the range of some £149 million.
Galileo International is one of the world`s leading providers of electronic global distribution services for the travel industry. Galileo International provides subscribers with information and booking capabilities covering more than 500 airlines and all major hotel chains, car rental companies, cruise lines and numerous tour operators throughout the world.
British Airways had previously indicated that its holding in Galileo was not a strategic investment and in July 1997 sold 5,891,660 shares in Galileo International Inc.