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Corporate Travel Management Announces Acquisition of Lotus Travel Group, Hong Kong

11 Jul 2018  |  15:16:00  |  Associate analysts  |  Increase  |  Decrease  |  

Original announcement: CTD to Acquire Lotus Travel Group Limited, Hong Kong

Corporate Travel Management announced on 11 July 2018 about the acquisition of Lotus Travel Group (Lotus), headquartered in Hong Kong. The Company will be acquiring 75.1% of Lotus with CTM Asian partners Ever Prestige Investments (EPI) acquiring the remaining 24.9%. EPI currently holds 24.9% of Wealthy Aim Investments, the holding Company of the Company's Asian travel business. The acquisition will be effective 2nd October 2018. The acquisition will be funded via a share placement of 1.554m FPO shares at $25.75 per share, raising A$40.0m. Base consideration of HK$300m (A$50m) which is 10x CY17 EBITDA. Like CTM Asia, Lotus profits were negatively impacted by declining ticket prices in CY17. The Company is expected to deliver full year EBITDA at or slightly above A$125m.

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