CTM raising $71 million to fund acquisitions.
Corporate Travel Management has just confirmed binding agreements to acquire 100% of Andrew Jones Travel, described as “a major Tasmanian travel business servicing the corporate, government and sporting markets”.
Andrew Jones Travel is a founding member of the Magellan Travel Group, with CTM to pay $5.6 million for the business comprising $4.6 million in cash and $1 million in Corporate Travel Management shares.
CTM is also expanding into the UK with the A$69 million acquisition of Redfern Travel, “a significant provider of travel services to both the government and corporate sectors in the UK,” based in Bradford in northern England.
The acquisitions will be fullly funded by an underwritten 1 for 21 pro-rata renounceable entitlement offer at an issue price of $15 per share, to raise about $71.085 million.
More details in today’s issue of Travel Daily.