- Corporate Travel Management (CTD) enters a binding agreement to acquire 100 per cent of Helloworld Travel’s (HLO) business for $175 million
- Under the agreement, CTD will acquire 100 per cent of Helloworld’s corporate and entertainment travel business in Australia and New Zealand
- This acquisition will add new clients to CTD’s existing client base and expand its reach into new verticals such as travel management for entertainment, film and music
- To fund the acquisition, CTD will be undertaking a $100 million capital raising with the remaining $75 million to consist of CTD shares
- CTD enters a trading halt with shares last trading at $22.29 on December 14
Corporate Travel Management (CTD) has entered a binding agreement to acquire 100 per cent of Helloworld Travel’s (HLO) business for $175 million.
Under the agreement, CTD will acquire 100 per cent of Helloworld’s corporate and entertainment travel business in Australia and New Zealand.
The acquisition is expected to be completed in Q1 2022 and is subject to a number of conditions including Australian Competition and Consumer Commission Clearance.
Helloworld CEO and Managing Director Andrew Burnes commented on the acquisition.
“We believe that CTM is the right home for our Corporate and Entertainment clients in the future,” Mr Burnes said.
“We regard CTM as an excellent operation and know they have particularly high standards of service and proprietary customer technology in the Australian and New Zealand markets around the globe.”
This acquisition will add new clients to CTD’s existing client base and expand its reach into new verticals such as travel management for entertainment, film and music.
CTD Founder and Managing Director Jamie Pherous feels privileged to acquire these businesses.
“We are privileged to be able to acquire these businesses and are excited to be the custodian of such a high-quality portfolio of clients,” Mr Pherous commented.
“We feel strongly that we will be able to continue to deliver strong product and service outcomes to their customers with our dedicated focus.”
To fund the acquisition, CTD will be undertaking a $100 million capital raising consisting of a $75 million placement and a $25 million share purchase plan.
Under the placement, 3.6 million fully-paid ordinary shares will be issued to shareholders at $21.
This price represents a 5.8 per cent discount to CTD’s last trading price of $22.29 on December 14 and an 8.3 per cent discount to the five-day volume-weighted average price of $22.91.
Under the share purchase plan, eligible shareholders will be able to subscribe for up to $15,000 without incurring any brokerage or transaction costs.
The plan is capped at $25 million and CTD may scale back applications if commitments are received for more.
It is expected to open on December 23 and close on January 20.
The remaining $75 million will be made up of Corporate Travel Management shares.
CTD has entered a trading halt with shares last trading at $22.29 on December 14.