Corporate Travel Management Limited (ASX:CTD) updates about an acquisition move

The Group requested for a trading halt in its securities pending an announcement relating to an acquisition and associated capital raising and the Group had already anticipated making the noted announcement prior to market close today (11 July 2018) and the trading halt was mentioned to be there until the earlier of commencement of trading on 13 July 2018 or when the announcement is made by the Company to the market.

The group seems to be on an acquisition strategy with the latest news on the acquisition of 75.1% interest of Lotus Travel Group Limited of Hong Kong, which is a travel services provider. CTD will fund the acquisition with share placement of 1.554 m fully paid ordinary shares at $25.75 per share with an aim to raise $40 m.

Recently, the Company successfully completed the acquisition of SCT Travel Group Pty Ltd and based on the splendid growth over the period, the group has reaffirmed its FY18 Underlying EBITDA guidance, which is expected to be approximately $125 million for the full year, and this represents 27 per cent growth on prior corresponding period (pcp). The Group is planning an EBITDA growth of over 20 per cent in 2HFY18 with a good momentum in FY19. The stock was trading at $27.60 before going in a trading halt, that is near to its 52-week high price ($28.00) as on 11 July 2018 (01:47 PM AEST).


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