Worldchoice’s largest shareholder has backed a £6 million deal to merge the consortium with the Travel Trust Association after months of speculation.
The Worldchoice board has recommended to shareholders that the consortium accepts the deal with TTA’s holding company TTA (2007).
This is due to be completed by the end of March following due diligence, court approval and an extraordinary general meeting in which at least 75% of shareholders need to vote in favour.
It follows months of uncertainty over whether Worldchoice would recommend its shareholders to accept a bid by Stella Travel Services, which owns Global Travel Group, or a last-minute offer by the TTA.
Under the TTA deal, £4.5 million goes to shareholders in an offer of £2.75 per share compared with Stella’s £2 a share. Worldchoice stays a member of the Triton Travel Group under the deal.
Keith Wilson, who owns a 23.5% shareholding, said: “It’s a fair offer to shareholders, Peterborough staff and members. They retain excellent commission rates, the benefits of staying part of Triton, the benefits the TTA will bring such as technology, and the added clout the organisation will have as it expands naturally.”
On average, Worldchoice shareholders have 10,000 shares each – a £27,000 payout.
TTA (2007) will also invest in a trust fund for members worth £1.3 million in five years’ time. The members retention trust fund will pay Worldchoice members after five years depending on their performance. Payouts could reach £20,000, but all members should receive at least £2,000.
Worldchoice chairman and managing director Colin Heal said the deal would also mean further investment in the Worldchoice brand and members could apply for funding to expand their businesses.
Worldchoice’s head office, regional structure and members’ consultative council would be retained. “There is a real commitment to retaining the Peterborough headquarters and staff for the forseeable future,” said Heal.
Redundancies are not anticipated but some jobs may change. “We will look for synergies by jobs being done slightly differently,” said Heal.