The acquisition means that TUI Travel will offer13 new all-inclusive holiday clubs in Turkey, Tunisia, Egypt, Greece and Spain.
This represents an important strategic step for the Group in securing the supply of an attractive, differentiated high quality hotel club product. The total consideration is €6 (€1 per operating company) in cash with the assumption of contingent debt of €10.5 million. Certain “Magic Life” trademarks and related rights are being acquired for a further €1 in cash.
The proposed acquisition is classified under the Listing Rules made by the UK Financial Services Authority as a “related party transaction” as TUI AG is classified as a “related party” as a substantial shareholder of TUI Travel. Consequently, the proposed acquisition is conditional upon and must be approved by TUI Travel’s shareholders other than TUI AG and its affiliates before it is completed. Shareholder approval will be sought at a General Meeting expected to be held in the second half of June 2011.