Australia’s Jetset Travelworld and Stella Travel Services Holdings are to merge, pending the approval of shareholders and regulators. The boards of both travel companies have signed a conditional merger agreement, and Jetset's largest shareholder, Qantas Airways has indicated it will support the deal.
The proposal remains subject to approval of Jetset shareholders, with an extraordinary meeting to be held in August.
It also will require approval from regulatory bodies including the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) and the Foreign Investment Review Board (FIRB).
An independent expert will also appraise the proposal.
"This merger is a unique opportunity to integrate two complementary travel businesses, adding scale to the combined company in the highly competitive Australasian travel services market," Jetset chairman Tom Dery said in a statement.
If the proposal receives approval, Stella shareholders will be issued with approximately 219.5 million Jetset shares, equivalent to half the capital of the merged entity.
The issue of the new shares would see the merged company holding a market capitalisation of A$439.2 million, based on the last closing price of Jetset shares.
It will continue to be listed as Jetset on the exchange.
Jetset shares are in a trading halt at A$1.00.
Stella chairman Andrew Cummins said customers will receive more competitive products and services from the merged entity.
"Both Jetset and Stella have emerged strongly through recent years and this transaction creates an opportunity to build a business of genuine scale, providing long-term benefits and stability for the merged entity's franchisees and members, staff, suppliers and other trading partners," he added.
Stella chief executive Peter Lacaze will be the new entity's chief executive, while Stella chief financial officer Elizabeth Gaines will hold the same roll in the merged company.
Jetset chief executive Peter Collins will return to Qantas.
Post-merger, the Jetset board will have nine directors, three of them nominated by Stella.
Australia’s Jetset Travelworld and Stella Travel Services Holdings are to merge, pending the approval of shareholders and regulators. The boards of both travel companies have signed a conditional merger agreement, and Jetset's largest shareholder, Qantas Airways has indicated it will support the deal.
The proposal remains subject to approval of Jetset shareholders, with an extraordinary meeting to be held in August.
It also will require approval from regulatory bodies including the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) and the Foreign Investment Review Board (FIRB).
An independent expert will also appraise the proposal.
"This merger is a unique opportunity to integrate two complementary travel businesses, adding scale to the combined company in the highly competitive Australasian travel services market," Jetset chairman Tom Dery said in a statement.
If the proposal receives approval, Stella shareholders will be issued with approximately 219.5 million Jetset shares, equivalent to half the capital of the merged entity.
The issue of the new shares would see the merged company holding a market capitalisation of A$439.2 million, based on the last closing price of Jetset shares.
It will continue to be listed as Jetset on the exchange.
Jetset shares are in a trading halt at A$1.00.
Stella chairman Andrew Cummins said customers will receive more competitive products and services from the merged entity.
"Both Jetset and Stella have emerged strongly through recent years and this transaction creates an opportunity to build a business of genuine scale, providing long-term benefits and stability for the merged entity's franchisees and members, staff, suppliers and other trading partners," he added.
Stella chief executive Peter Lacaze will be the new entity's chief executive, while Stella chief financial officer Elizabeth Gaines will hold the same roll in the merged company.
Jetset chief executive Peter Collins will return to Qantas.
Post-merger, the Jetset board will have nine directors, three of them nominated by Stella.
