Helloworld takes Magellan

HELLOWORLD Travel’s takeover of the Magellan Travel Group was finalised last night ( TD breaking news), with HLO ceo Andrew Burnes confirming the settlement of the shock deal announced late last year ( TD 19 Dec).

“We are delighted to welcome the 97 members and 129 agencies of the Magellan network to Helloworld Travel Limited,” he said in an ASX statement.

“We look forward to working with the Magellan members throughout Australia to deliver great outcomes for all stakeholders,” he added.

Despite initial concerns from within the Magellan ranks ( TD 02, 03, 04, 19, 22, 24 Jan), in the end the overwhelming majority of members signed a revised deal with Helloworld, with just one Magellan agent going elsewhere - believed to be TTFN Travel which has offices in Perth & Melbourne.

The $32.5 million purchase has been funded by a mixture of 65% in cash and 35% in HLO shares, and according to a disclosure notice issued last night after confirmation of the deal, the shares are going to the five MTG directors, escrowed for 12 mths.

The “Appendix 3B” announcement confirms the issuing of 2,427,649 shares to Trevor and Sonia Jones, Andrew and Karen Jones, Jamea Investments Pty Ltd, Bellazahn Pty Ltd and EPACS Pty Ltd as “part consideration for the acquisition of the Magellan Travel Group”.

Based on the current HLO share price of $4.66 the shares are worth just over $11m in total.

Jamea Investments is a company owned by Magellan ceo Andrew Macfarlane and his wife Janetta.

Bellazahn Pty Ltd is owned by Platinum Travel Group ceo Carl and Cathryn Buerckner, while EPACS P/L is owned by Penny and Edwin Spencer of Spencer Travel.