News

First Choice and TUI have today published their prospectus for the proposed merger of their companies to form TUI Travel PLC.

The two have also revealed that First Choice Mainstream Holidays managing director Dermot Blastland will head up TUI Travel’s UK and Ireland operations should the merger get the go-ahead.

The prospectus, which can be viewed here, includes a trading update and will be posted to shareholders next week along with details of the proposed scheme of arrangement of First Choice.

Having gained EU approval the merger is all but a done deal although it still remains subject to the approval of First Choice shareholders and the scheme of arrangement must be approved by the Court.

TUI reports that customer numbers for the 2007 summer season are up 7.8 per cent, with booked revenues up 2.8 per cent year-on-year, as at June 22, 2007.

However, increased sales in Central and Western Europe were largely offset by the performance in Northern Europe, where difficult market conditions in the UK and Ireland resulted in a year-on-year decline.

Earlier this month First Choice Holidays reported an increase in losses from £76.5 million to £82.5 million year-on-year for the six months to April 30, impacted by £146 million of acquisitions spend and increased fuel and airport passenger duty (APD) costs.

The next significant steps in the First Choice / TUI merger will be:

July 25, 2007: First Choice shareholder meetings

August 31, 2007: Final court hearing to sanction Scheme / reduction of capital

September 3, 2007: Expected date of completion, listing of TUI Travel PLC shares and commencement of dealings

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