HELLOWORLD is set to proceed with its planned purchase of Express Travel Group (ETG) for $70 million, after its shareholders overwhelming voted in favour of the acquisition this morning.
Before the vote took place, Helloworld Chairman Garry Hounsell addressed the company’s stakeholders to highlight the expected benefits of the transaction, which includes the rapid expansion of the agency’s retail network in Australia and New Zealand.
Hounsell also flagged a strengthened competitive position with ETG’s ticket consolidation business on board, and a significantly positive forward impact on earnings, including a prediction that the company’s forecasted earnings for FY23 will multiply by seven. He also pointed to “strong synergies” via its Smart Tickets solutions to benefit travel sellers.
“Having regard for all of these factors, the Helloworld directors believe that the proposed transaction will create materially more value for Helloworld shareholders,” the Chairman explained.
The landmark purchase will see Helloworld take ownership of ETG’s portfolio of brands, including Express Tickets, Independent Travel Group, Select Travel Group, italktravel & cruise, Alatus and Creative Cruising.
