Helloworld has received shareholder approval to merge with the AOT Group and form what Chairman Rob Marcolina describes as “a leading integrated travel group in the Australian market”.
The announcement for the merger was originally made back in November last year, in a bid to create a more competitive company.
This morning, around 97.74 percent were in favour of the acquisition of the AOT Group, while only 2.26 percent were against.
Prior to the vote, Marcolina said majority shareholders Helloworld, Qantas and Europe Voyager NV had indicated that they were in favour of the purchase.
With today’s approval, around 36.45 million new Helloworld Shares will be released.
Helloworld CEO, Andrew Burnes, will step in as Director along with AOT Group founder, Andrew Burnes.
The company’s board will also be reconstituted with AOT’s founder Andrew Burnes and Helloworld CEO, Cinzia Burnes, stepping in as Executive Directors of the Company and holding around 40 percent of shares.
Additionally, the Helloworld Board will comprise an independent non-executive Chairman, an independent non-executive Director and a nominee of each of Helloworld’s other major shareholders.
Brett Johnson and James Millar have stepped down from the board.
Since the announcement was made this morning, the company’s shares are sitting around 0.400 – up from yesterday’s 0.385, indicated confidence over the merger.
Speaking at an Extraordinary General Meeting, Marcolina said the integration of the two companies is expected to “increase the scale and earnings of the enlarged Helloworld Group.
“[This will] allow it to compete more effectively with larger participants in the retail, wholesale and corporate travel industry and with global online competitors.”
Rob Marcolina, Helloworld Chairman
More information about the united company will be released on 24 February 2016, when the company’s interim financial results are due.