19th Nov 2013 08:42
LONDON (Alliance News) - Travel agencies TUI Travel PLC and Thomas Cook Group PLC said Tuesday they sold their interests in UK air-traffic controller NATS Holdings Ltd. for GBP38 million each.
Both sales of stakes in The Airline Group Ltd., 41.9% shareholder of NATS, were to Universities Superannuation Scheme Ltd., the trustee of the pension scheme for employees of UK universities.
TUI said it will 87.4% of its shareholding and loan note interests in Airline Group. It said it would retain a small "stub" shareholding in the group. TUI said the holding was non-core, and the sale price exceeds the value at which it was carrying the investment on its books.
Thomas Cook said it will sell 91.5% of its shareholding and loan note interests in Airline Group, while retaining the balance. It said it is will use the cash to pay down debt, as part of its target to raise GBP100 million to GBP150 million for that purpose by its financial year 2015.
On Monday, Thomas Cook said it has completed the sale of its UK corporate foreign exchange business for GBP4.5 million in cash to Moneycorp, and, in a separate deal with Collette Travel Service Inc, outsourced its UK escorted tours business.
The two companies said the transaction is expected to complete during the first quarter of calendar year 2014 and is subject to clearance from the European Commission.
In early trade Tuesday, TUI is quoted at 388.30 pence per share, up 1.10p. Thomas Cook is trading at 143.30p, up 2.90p.
By Tom Waite; [email protected]; @thomaslwaite
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