29th Jun 2007 13:24
First Choice Holidays PLC29 June 2007 29 June 2007 FIRST CHOICE HOLIDAYS PLC AND TUI AG PUBLICATION OF PROSPECTUS The Boards of First Choice Holidays PLC ("First Choice") and TUI AG announcethat the prospectus for TUI Travel PLC prepared for the purposes of the proposedmerger of First Choice and the Tourism Division of TUI AG ("TUI Tourism") hasbeen published today. The prospectus and the circular relating to the proposedscheme of arrangement (the "Scheme") of First Choice will be posted toshareholders next week. The merger remains subject to a number of conditions, including the approval ofFirst Choice shareholders, approval of the Scheme by the Court and listing ofTUI Travel PLC shares. First Choice shareholders will be sent a circular setting out full details ofthe Scheme, together with the prospectus. The prospectus contains furtherinformation on First Choice, TUI Tourism and TUI Travel PLC, inclusive of atrading update. Current trading and prospects for TUI Tourism Trading for the financial year 2007 is in line with the Board's expectations.Overall demand in the travel market remains strong, with varying levels ofgrowth in demand across TUI Tourism's source markets. Overall, bookings for the 2007 Summer season have started well, with customernumbers up 7.8 per cent. and booked revenues up 2.8 per cent. year-on-year, asat 22 June 2007. The Central Europe Sector, which includes the large Germansource market, recorded a good increase in bookings, although the Sector'sresults are affected by start-up costs in connection with the restructuring offlight operations under the new brand TUIfly.com. Customer numbers and bookedrevenues have also increased in the Western Europe Sector, although the NorthernEurope Sector has experienced a decline year-on-year due to difficult marketconditions in the UK and Ireland. Despite varying trends across TUI Tourism's source markets, in the absence ofsignificant adverse events the performance for the full year is expected to bein line with the Board's expectations. Current trading and prospects for First Choice Trading for the financial year 2007 has been in line with the Board'sexpectations. For the 2007 Summer season, the Mainstream Holidays Sector hasperformed in line with management expectations in what remains a challengingmarket. As at 24 June 2007, revenues were cumulatively up four per cent. onvolume growth of one per cent., with overall capacity flat on 2006. Capacity inthe short-haul market has been reduced by five per cent., with revenues downseven per cent. on lower volumes of five per cent. Within the medium-haulsegment, where capacity has been maintained at 2006 levels, both revenues andvolumes are flat. The long-haul segment has experienced strong demand, withcapacity up by 25 per cent. and revenues up by 26 per cent. on volume growth of22 per cent. The Specialist Holidays Sector has had an excellent start to the 2007 Summerseason across all its businesses, with sales and volumes as at 24 June 2007 up18 per cent. and 16 per cent., respectively, on 2006 as a result of increaseddemand for lifestyle and destination specialist products. In the Activity Holidays Sector, Summer revenues were up five per cent. as at 24June 2007, as the Sector continues to perform in line with the Board'sexpectations. Revenues were up seven per cent. in the Adventure business and uptwo per cent. in the Marine business, on a like-for-like basis. Margins arecurrently slightly ahead of last year for the Summer programme. In the Online Destination Services Sector, all routes to market as at 24 June2007, continue to grow and are performing well, with sales and bednights up 50per cent. and 30 per cent. respectively, with margins also ahead of last year.The integration of laterooms.com is progressing as planned, as the businessenjoys strong demand for late availability bedstock, with sales and volumes up78 per cent. and 73 per cent. respectively. Timetable The timetable of principal events will be as follows: First Choice shareholder meetings 25 July 2007Final court hearing to sanction Scheme / reduction 31 August 2007of capitalExpected date of completion, listing of TUI Travel 3 September 2007PLC shares and commencement of dealings The prospectus is available on the First Choice website atwww.firstchoiceholidaysplc.com and at the FSA Document Viewing Facility. Conference call There will be a conference call for analysts on Tuesday 3 July at 9am. Thecall-in details are: Telephone number: + 44 (0)1452 542 300Conference ID: 5678865 Enquiries: Jessica Rouleau/Amy FaulconbridgeHudson Sandler +44 (0)207 796 4133 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TUI.L