TD breaking news – Helloworld to buy 50% of MTA Travel
Deal values MTA at $28 million.
Helloworld shares have been placed in a trading halt this morning, with the company announcing a capital raising in order to acquire 50% of MTA Travel.
Existing MTA shareholders and management will continue to be involved in the business, which produced TTV of $168.9 million last year, with revenue of $27.8 million and EBITDA of $3.3 million.
Helloworld will pay $14 million in cash for a 50% stake in the business, with an option to acquire the remaining 50% in five years time.
The company has announced a fully underwritten placement of shares worth about $30 million to institutional shareholders, with the money to be used to fund the MTA acquisition and pay down existing Helloworld debt.
“Established over 25 years ago, MTA is Australia’s leading home based travel consultancy business and provides Helloworld with a significant footprint into a sector that we expect to see high growth in the short-medium term,” said Helloworld ceo Andrew Burnes.
More details in today’s issue of Travel Daily.
The above Breaking News Alert was sent to Travel Daily subscribers on 21 Oct 16
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