LONDON--Travel firms TUI Travel PLC (TT.LN) TUI AG (TUI1.XE)
said Monday they have agreed the terms of their all-share merger,
originally announced in June, creating a firm worth 6.5 billion
euros ($8.41 billion).
Under the deal, TUI Travel shareholders--other than TUI AG and
certain connected parties--will get 0.399 new TUI AG shares for
each TUI Travel share held, giving them about 46% of the combined
group. Mr. Alexey Mordashov, TUI AG's largest shareholder, has
confirmed his support for the merger.
TUI Travel shareholders will also get a second interim dividend
of 20.5 pence a share.
The merged company will be German domiciled with a premium
listing on the London Stock Exchange, in parallel with a secondary
market quotation on a German stock exchange.
Peter Long and Friedrich Joussen will be joint chief executive's
of the combined group, with Mr. Long to become chairman of the
supervisory board of TUI AG. Mr. Joussen will lead the combined
group as sole CEO from February 2016.
The deal comes after years of speculation about a full-blown
merger following the formation of TUI Travel in 2007, when TUI AG's
airline and tour operator business combined with First Choice
Holidays PLC, a U.K. travel company. TUI AG currently owns about
54.5% of TUI Travel.
-Write to Ian Walker at ian.walker@wsj.com
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