Helloworld shuts down talks with AOT

Back on September 2, Helloworld revealed it was in talks with AOT Group about a potential acquisition of AOT by the travel agency.

Helloworld has now officially announced it has been “unable to reach agreement with the AOT shareholders on acceptable terms”, and as a result, discussions have been terminated immediately.

The terms of the transaction, Helloworld revealed in a statement on ASX, would have resulted in the vendors of AOT becoming significant minority shareholders in Helloworld.

But the board of Helloworld has “unanimously concluded” that the strategic and financial merits of the acquisition weren’t satisfactory and would have no benefits for the agency, with the statement labelling them “insufficiently compelling”.

Helloworld reiterated that is remains focused on its existing strategy, and is continuing to make strides in future-proofing its business and returns.

The search process for a new CEO to replace Elizabeth Gaines, who announced her resignation back in June, is “ongoing”, with updates expect “in due course”.

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Latest comments

Confused says:
September 18, 2015 at 10:57 pm
Shocked at this, AOT, Andrew Burns a possible take-over is probably the only positive thing to possibly happen to this company since Peter Lacaze left/was moved along… after all of their disaster business decisions and lack of disclosure and honesty to shareholders, franchisees and staff they deserve to have a plummeting share price. When you have CEO’s, executives and board members able to walk away completely unaccountable with their pockets lined, I find it hard to see why anyone would want this company in the current state to succeed. It needs and is probably lined up for a major over-hall very soon.
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sting says:
September 15, 2015 at 2:09 pm
…..andrew burns said no…. in front of a mirror…
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CruiseFactoryData says:
September 14, 2015 at 5:17 pm
I think the board made the right call, until the share price is growing based on the performance of the current travel units or the valuation is on track or above trend then an acquisition which is not a “100% strategic fit” represents a distraction outside of the core competencies of the business.
As a broader industry while its east to snipe at (not so) Stella share values we need a travel power to balance out the influence of the red company in order to keep our industry healthy and vital. As the reservoir of a portfolio of Australian travel brands that resonate with the public we hope the next leader will be a revitaliser of the opportunity that remains Stella.
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- PJames says:
  September 16, 2015 at 5:04 pm
  I think that anyone capable of coming up with such corporate speak mumbo jumbo to the standard of ” As the reservoir of a portfolio …. blah blah” would be a perfect fit for a senior management role at Helloworld. Apply now ,, there will be plenty of vacant roles very soon. I agree with Amy re the share price – no hope. Ever. Much more news to come from Helloworld that’s for sure. And none of it good.
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  - CruiseFactoryData says:
    September 17, 2015 at 10:48 am
    How very tall poppy of you, consider me cut down, hard to apologise for being educated, it happens in migrant families. Next time I will stick to ” Those drop kicks in charge at Helloworld need to sell more shit and stuff bro, to make some decent dough , aaayy!” Doesnt get us anywhere its a complex problem.
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    - PJames says:
      September 17, 2015 at 8:06 pm
      The ability to communicate to all doesn’t come from ‘being educated’. Some of the senior management at HLO are evidence of that. All your ‘being educated’ has given you it seems, is the ability to bore a glass eye to sleep ….. bro !!
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    - Amy says:
      September 17, 2015 at 3:20 pm
      CruiseFactoryData – it really is not a “complex problem””, it never has been at HLO. It is a simple problem, the board and executives have no idea how to run a travel company, or any company really, it is that simple. This is not a mum and dads public company, 85% of the shares are owned by 4 or 5 institutions, the executives are all on a large salary, they will do anything to stop it being taken over as they know they will be out of a job. Most of the board are also Qantas board members, which speaks volumes for the sorry state of affairs, and none of the board or executives actually like the CEO of AOT who wants to take it over. PJames is correct with regards the “”corporate speak mumbo jumbo”” that is just the one thing the board and executives are good at.Franchises queuing up to leave this company, including me.
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- Amy says:
  September 15, 2015 at 5:06 pm
  With respect, i think you are delusional if you believe the share price will ever grow “based on the performance of the current travel units….””. The only way this company will ever grow is if it ever gets taken over. The next leader will find it very difficult, if not impossible to grow the company profitable if the present inadequate board stay. They are losing literally millions every week, in addition to the $500,000 per month they are losing to fraud via their white label Orbitz booking engine, then again, not as bad as Orbitz losing $22 Million so far this year to fraud, via the same engine. What a sad state of affairs, what a sad Australian company.
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  - CruiseFactoryData says:
    September 17, 2015 at 10:45 am
    I think you have all the facts right, the issue is not how do they grow, but more addressing given all the great business’s they have why are they not making money? Growth by acquisition in a mature market is sensible, but right now? Growth by acquisition i.e. buying AOT seemed like an odd strategy or perhaps it was away to boost the share price and make the numbers look good, who knows. I want to see them succeed and I am interested in how it can happen, especially when so much anger has been created.
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