Lufthansa and KarstadtQuelle agree on future of Thomas Cook
Deutsche Lufthansa AG and KarstadtQuelle AG have today signed a Memorandum of Understanding. In this accord, Lufthansa has agreed to sell its 50 per cent stake in the leisure travel group Thomas Cook AG to KarstadtQuelle. The agreed purchase price is 800 million euros. While Lufthansa raises its stake in Condor Flugdienst GmbH from the present ten to 24.9 per cent and receives the shares held by Condor in the Turkish holiday carrier Sun Express, the net profit for the previous financial year 2005/06 of Thomas Cook will fully remain within the company.
The accord still requires the approval of the Supervisory Boards of Lufthansa and KarstadtQuelle and endorsement by the regulatory authorities. The transactions are scheduled to be finalised in the first quarter 2007. Lufthansa and KarstadtQuelle each currently hold a 50 per cent stake in Thomas Cook. Condor Flugdienst GmbH is presently 90 per cent owned by Thomas Cook, the remaining ten per cent is held by Lufthansa.
[GADS_NEWS]„This decision is in continuation of our strategy of focusing on core business, consistently trimming the portfolio to concentrate on our core competencies and creating added value for our company,“ said Lufthansa Chairman and CEO Wolfgang Mayrhuber. „The new structure furnishes Thomas Cook and KarstadtQuelle with optimum opportunities to develop in the tour operator business.“ The leisure travel business requires targeted investment and clear focusing in view of forthcoming structural change and consolidation, said Mayrhuber. „We intend to invest only in our core business. Our shareholders and staff will profit from a stronger positioned Lufthansa as will our customers.“
The Chairman emphasised that Lufthansa and Condor will continue their close cooperation in future. „We are underlining that partnership by raising our stake to 24.9 per cent which will be held direct by Lufthansa, also in future. We want to help actively shape Condor’s development.“
„Sun Express has established a leading position as a holiday carrier operating flights to Turkey,“ Wolfgang Mayrhuber observed. In harness with Turkish Airlines, a stakeholder in Sun Express, Lufthansa wants to expand that position and generate further growth in the Turkish leisure travel market.
In the Lufthansa annual financial statements, Thomas Cook is included under income from subsidiaries. It returned a segment result of 54 million euros in the 2005 business year.
Deutsche Lufthansa AG and KarstadtQuelle AG have today signed a Memorandum of Understanding. In this accord, Lufthansa has agreed to sell its 50 per cent stake in the leisure travel group Thomas Cook AG to KarstadtQuelle. The agreed purchase price is 800 million euros. While Lufthansa raises its stake in Condor Flugdienst GmbH from the present ten to 24.9 per cent and receives the shares held by Condor in the Turkish holiday carrier Sun Express, the net profit for the previous financial year 2005/06 of Thomas Cook will fully remain within the company.
The accord still requires the approval of the Supervisory Boards of Lufthansa and KarstadtQuelle and endorsement by the regulatory authorities. The transactions are scheduled to be finalised in the first quarter 2007. Lufthansa and KarstadtQuelle each currently hold a 50 per cent stake in Thomas Cook. Condor Flugdienst GmbH is presently 90 per cent owned by Thomas Cook, the remaining ten per cent is held by Lufthansa.
„This decision is in continuation of our strategy of focusing on core business, consistently trimming the portfolio to concentrate on our core competencies and creating added value for our company,“ said Lufthansa Chairman and CEO Wolfgang Mayrhuber. „The new structure furnishes Thomas Cook and KarstadtQuelle with optimum opportunities to develop in the tour operator business.“ The leisure travel business requires targeted investment and clear focusing in view of forthcoming structural change and consolidation, said Mayrhuber. „We intend to invest only in our core business. Our shareholders and staff will profit from a stronger positioned Lufthansa as will our customers.“
The Chairman emphasised that Lufthansa and Condor will continue their close cooperation in future. „We are underlining that partnership by raising our stake to 24.9 per cent which will be held direct by Lufthansa, also in future. We want to help actively shape Condor’s development.“
„Sun Express has established a leading position as a holiday carrier operating flights to Turkey,“ Wolfgang Mayrhuber observed. In harness with Turkish Airlines, a stakeholder in Sun Express, Lufthansa wants to expand that position and generate further growth in the Turkish leisure travel market.
In the Lufthansa annual financial statements, Thomas Cook is included under income from subsidiaries. It returned a segment result of 54 million euros in the 2005 business year.
