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White Rock/Munich (ots Ad hoc-Service) - Travelbyus.com ltd
(Toronto Stock Exchange: TBU) and Travel24.com AG (Frankfurt Neuer
Markt: TVD) are pleased to announce that they have reached a Letter
of Intent for a comprehensive partnership based on a combination of
strategic and operational elements.
This agreement is believed to be the e-Travel industry's first
strategic transatlantic partnership, and may eventually lead to a
full merger between the two companies. Terms of the deal are expected
to include the issuance of 13,800,000 shares at an average price of
US$ 2.50 oftravelbyus.com in exchange for the delivery by
Travel24.com of a combination of US$ 5 million in cash and the
issuance of 1,482,594 shares of Travel24.com at an average price of
US$ 19.90 (approx. EUR 22.00) per share. On a post-transaction basis
travelbyus.com will own approximately 12.96% of Travel24.com and
T24.com will own approximately 14.71% of travelbyus.com. The deal is
subject to meeting certain legal and regulatory conditions.
Travelbyus.com and Travel24.com see this strategic partnership
enabling both companies to greatly enhance their value and
profitability through integration of their operations, strategies,
financial resources, products, distribution, marketing and
technology. Both companies will engage their financial advisers
during the next six months to do a comprehensive valuation opinion.
Such opinion will guide the respective boards to determine if a full
merger between the two companies would be of greater benefit to their
Travelbyus.com believes that the integration of American and
European inbound and outbound tourism flows, valuable contracts with
premier travel and technology providers such as airlines, incoming
agencies, hotel groups and Global Distribution Systems and increase
in the distribution capabilities on a transatlantic scale constitutes
an unique opportunity for both companies. This will rapidly and
profitably grow both companies into an unique and unparalleled
international travel group based on the integration of products,
technology, marketing and distribution led by management on both
sides of the Atlantic.
Travel24.com also believe that this compelling opportunity to
rapidly build and secure global strategic value for their respective
shareholders will be enhanced by the cross shareholding of both the
companies. The unique partnership with travelbyus.com is a major step
forward in the execution of the Company's strategy to make
Travel24.com a profitable international leader in Internet based
leisure travel, as had been promised to their shareholders at the
time of the IPO on March 15, 2000, when the Company raised Euro 70
million (approximately US$ 63 million at today's exchange rate).
Travelbyus.com is an Internet based vertically integrated travel
service provider combining synergetic acquisitions in the fields of
Travel product and distribution with a unique marketing and
technology platform/strategy which allows travelbyus.com to
simultaneously obtain high revenue growth and exceptional
profitability. Travelbyus.com is presently trading on the Toronto
Stock Exchange and the Frankfurt Stock Exchange but is in the process
of transferring its corporate domicile into the USA through a
previously announced transaction.
Travel24.com is a leading German leisure travel services provider
combining an online Content & Community platform, call-center and
Internet based fulfillment operation and a software house specialized
in Internet solutions. Travel24.com is presently executing its
pan-European expansion together with complementary partners such as
selected media groups and large technology providers.
travelbyus.com contact: Peter Rooney Tel:+1 905-475-5111 Email:
Press contacts North America: Barry S. Kaplan Tel: (732) 747-0702
Christoph Brüning Tel: 49 61 968800210 Email: firstname.lastname@example.org
Travel24.com contact: Marc Maslaton/Knut Wehner Tel: +49 89
379-0950 Email : email@example.com
Email : knut.
Bertram von Plettenberg Tel:+49 89 242-8760 Email: firstname.lastname@example.org
End of Message
Original-Content von: Travel24.com AG, übermittelt durch news aktuell