Jetset Travelworld
(ASX:JET) and Stella Travel Services have joines forced with a 50/50 merger, that’s set to advance their position in the travel sector.
Jetset chairman Tom Dery says the proposed deal, which values the combined operations at $439 million, has the support of Qantas which owns 58% of Jetset.
Mr Dery believes the merger is extremely complimentary to both companies - but shareholders must approve the deal first with an extraordinary general meeting to be held in August.
The deal also requires the approval of the competition regulator and the Foreign Investment Review Board.
However it could be two months before reports are made available on the financial performance of Stella.
The only details available yesterday were the $40 million of debt Jetset will inherit from Stella, and the $220 million in shares it will hand over for Stella's business.
Jetset Travelworld achieved a 2009 net profit of $15 million, which was a slight improvement on the year before.
