TRAVEL FIRM SPREADS WINGS ABROAD

BRISBANE-based Corporate Travel Management has taken advantage of the tourism down turn to ink a deal to buy a complementary US business for $US200.4m ($A283m).

The company last month posted a small net loss for 2019-20,when it slashed more than 1000 jobs, and has not provided an outlook for the current financial year, citing uncertainty around travel restrictions and quarantine requirements. But it announced yesterday it was absorbing Nebraskabased Travel& Transport, which services the business sector and derives more than 90 percent of its earnings in the US, while Europe accounts for the rest .“Travel& Transport has an incredible reputation and along history of success within the global travel industry ,” said Corporate Travel managing director Jamie P hero us.

Corporate Travel said there was a compelling strategic rationale for the acquisition“with scope for material combination benefits ”.

Co mm Sec analyst Steve Daghlian said the acquisition aimed to strengthen the company rather than just sitting back and taking the hits during the health crisis.

“They’ ve maybe taken advantage of the situation at the moment where things are volatile and uncertain in the travel space ,” Mr Daghlian said.

Corporate Travel says a fully under written entitlement offer at $13.85 a share, a 14.3 percent discount to the stock’ s last traded price, would raise $375 m. The capital raising could also fund other acquisitions.

The deal is expected to be completed late next month,