Australia's Corporate Travel Management (CTM) said it is raising AUD53 million (USD49.6 million) for the acquisition of a major stake in Westminster Travel. This was according to a report published by The Wall Street Journal.
Westminster Travel is a company that provides travel management services. The firm was founded 40 years ago. At present, the company has headquarters located in Hong Kong, China, Taiwan, and Singapore, said the report.
After completion of the proposed deal, CTM will buy a 75.1% stake in Westminster Travel. The remaining 24.9% will be owned by the company's key investors. These investors include Yu Kam Kee Lawrence and Sin Just. Morgans Financial Ltd is the underwriter of the capital raising. CTM shares are being offered at AUD4.60 apiece. This was an 11.2% discount to the closing price of AUD5.18 on Friday, the report said.
On Monday, CTM requested to halt trading in its shares pending an announcement of the capital raising. The company's shares rallied 46.7% this year to date, The Wall Street Journal reported.
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