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helloworld ditches AOT takeover talks


Says cons outweigh the pros

Travel agency grouphelloworld has announced that it won’t be pursuing the acquisition of AOT Group, after it was unable to broker a deal with AOT shareholders on acceptable terms.

 

L-R: Andrew Burnes, AOT Group CEO and the Hon. Joe Hockey MP, Federal Treasurer. Image Morganna Magee

 

Less than two weeks after confirming it was in talks with AOT about a possible takeover, helloworld said the terms of the transaction would have resulted in the vendors of AOT becoming significant minority shareholders in HLO.

 

Travel agents coming to a Costco near you

 

As a consequence, its board unanimously decided that the merits of the takeover were “insufficiently compelling”.

 

Meanwhile, the search for appointing a new helloworld chief executive continues and HLO says it will update the market in due course. Last month, helloworld revealed a financial year loss of nearly $200 million.

 

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Written by: Mark Harada


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