Further to the announcement on June 3, 2019 that Sunweb Group had entered into an agreement to acquire Corendon tour operating activities in the Netherlands and Belgium, the back-office in Turkey and Corendon Dutch Airlines (“Corendon”), Sunweb today confirms that it will not pursue the acquisition and has terminated the SPA in accordance with its terms. The reason is that the requirements to complete the transaction were incapable of being completed by the long-stop date. Sunweb Group and Corendon will continue as two separate companies with different shareholders.
“We regret to make this announcement as Sunweb Group has invested significant time and resources into making this transaction happen. As the long-stop date of the sale and purchase agreement came due without all requirements being satisfied, we terminated the transaction,” says Mattijs ten Brink, CEO of the Sunweb Group.
The Sellers of Corendon have challenged Sunweb Group’s decision and the case will now be reviewed by the District Court of Amsterdam. Sunweb Group is confident in its legal position and is only issuing this statement to ensure accurate and factual information as the legal proceedings will become public.
COVID-19 has had significant impact on the entire travel industry. Sunweb Group is affected but benefits from its asset light business model, a mix between ski- and sun holidays and low fixed costs, as it does not own aircrafts or hotels, and sells its packages directly to consumers online. These characteristics, in combination with strong partnerships and continued support from its shareholders and lenders, ensure that Sunweb Group stands strong despite the difficult market circumstances.
Mattijs ten Brink: “With the termination of the deal, both organizations can fully focus on their respective key priorities. In the current crisis, and as a responsible digital holiday expert, Sunweb Group will stay committed to its customers and the promises made. At the same time we will continue to secure the health and safety of our passengers so they can enjoy their future holidays without concerns. As an organization we will use the current period to accelerate our digital agenda. I am pleased that our lenders and shareholders are supportive to take us through this crisis, even as the COVID-19 crisis is likely to drag out.”
Sunweb Group is making this announcement now since the initiation of injunction proceedings by the Sellers of Corendon will make the situation public. Sunweb Group therefore wants to inform its stakeholders transparently.