Saturday, September 29, 2007

Its true - TUI acquires Asiarooms

Once again search engine traffic proves an indicator of M&A activity and finally a rumour from the BOOT proves true. The confirmation is in that TUI has indeed bought Asiarooms (newswire article here). Can't believe they did it. Thanks to Nathan from Bangkok for sending through the news link. Press release claims that Asiarooms is doing 4 million bed nights a year (about 2.5million room nights) but that sounds inflated to me.

UPDATE: with help from a loyal reader have found a filing from TUI that indicates the purchase price of Asiarooms of $67.5mm ($49mm in cash and $18.5 in assumed debt). Here is the quote

With effect from 28 September 2007, Pacific World Singapore Pte. Ltd. (Singapore) acquired a 100% share in Asiarooms Pte. Ltd. (Singapore), a company operating in the hotel accommodation agency business. The goodwill (33.1 million GBP or € 47.4 million), capitalised on a preliminary basis as at the acquisition date, was determined on the basis of the purchase price including incidental acquisition costs of 49.0 million USD and negative net assets of 18.5 million USD.
We assume Pacific World is a TUI vehicle. Anyone out there read this differently?

2 comments:

Sam I Am said...

Haha, that's kind of cool. I can always tell when a company is about to be bought out by how much more active their sales and SEO teams get... our forums and blogs have been hit hard by asiarooms spammers in the past weeks.

Nuttakorn said...

European travel company is now beating with US Travel Company. For a few days ago, the Priceline has acquired the competitor of Asiarooms, Agoda. Wow, that's so exciting for this industry. I would watch that movement from big guys.