27 May 2014 15:08
27 May 2014
Sale of UK Corporate Travel Business
Thomas Cook Group plc announces today that it has agreed to sell its UK corporate travel business to Mawasem Travel & Tourism Ltd for a consideration of £13.5m.
The UK corporate travel business, Co-operative Travel Management, is part of the joint venture between Thomas Cook, Co-operative Group and Midlands Co-operative. Mawasem Travel & Tourism Ltd is the UK subsidiary of the Al Tayyar Group, the leading Middle Eastern owned global travel group which acquired Thomas Cook's Elegant Resorts business earlier this year. The transaction is expected to complete by the end of June 2014.
Commenting on the sale, Harriet Green, Group Chief Executive Officer of Thomas Cook Group plc, said:
"This sale enables us to further intensify our focus on those key brands and products that are core to delivering our strategy for sustainable profitable growth. We wish Mawasem and the corporate travel team every success."
Notes to Editors:
(1) Thomas Cook entered into a joint venture with Co-operative Group and Midlands Co-operative in October 2011, when the three parties merged their retail travel agency operations in the UK. Thomas Cook Group plc holds a 66.5% interest in the joint venture, with Co-operative Group holding 30% and Midlands Co-operative 3.5%.
(2) Co-operative Travel Management employs c. 200 people, all of whom will remain with the business on completion of the transaction.
(3) The sale is expected to result in a net loss on disposal of c. £4m, due to the write-off of intangible assets and goodwill recognised on creation of the joint venture in 2011 that have been fairly allocated to the UK corporate travel business.
(4) Co-operative Travel Management contributed net revenues of £11m and earnings before interest and taxes (EBIT) of £2m in the financial year ended 30 September 2013.
Enquiries
Investors & analystsGeoffrey Pelham-Lane, Thomas Cook Group +44 (0) 20 7557 6414Mav Wynn, Thomas Cook Group +44 (0) 20 7557 6433
MediaJenny Peters, Thomas Cook Group +44 (0) 20 7557 6431Andrew Lorenz, FTI Consulting +44 (0) 7775 641807