SHAREHOLDERS HAPPY TO FUND CTD EXPANSION

SHAREHOLDERS HAPPY TO FUND CTD EXPANSION

SHAREHOLDERS of Corporate Travel Management (ASX: CTD) have backed the company’s expansion plans with their hard-earned dollars, with 97.71 per cent taking up the option to buy shares in the company’s capital raising offer.

CTD announced a four for 27 renounceable rights issue for ordinary shares in CTD on November 20, at a price of $4.60 to raise approximately A$53.3 million to fund its acquisition of Westminster Travel.

The company received valid applications under the Entitlement Offer for approximately 11,328,836 shares (approximately $52.1m).
This represents about 97.71% of the 11,594,518 new shares offered to eligible shareholders.

The offer was fully underwritten by Morgans, which takes up the shortfall of 265,682 new shares worth $1.2 million.

Managing director Jamie Pherous (pictured) is pleased with the result.

“The acquisiton will fast-track CTM’s entry into the Asian travel market, delivering an immediate and mature footprint in key Asian markets, and provides cross-selling and growth opportunities which will benefit both businesses,” he says.

“We would like to thank shareholders for their continued support.”
The offer closed at 5pm on January 16. The allotment of new shares under the entitlement offer is scheduled to take place on January 24, with trading to commence on January 28.

CTD shares are trading up 0.7 per cent at $5.50 this morning.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Ocean Guardian administrator in talks with "several parties" to secure its future

Ocean Guardian administrator in talks with "several parties" to secure its future

After two withdrawn initial public offering (IPO) attempts in 2018 ...

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

Westpac breached Banking Code of Practice in NT branch closure, putting vulnerable customers at risk

The independent body tasked with keeping bank behaviour in check ha...

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Cyber security consultancy CSO Group to merge with AI enabler xAmplify

Sydney-based cyber security consultancy CSO Group is set to join fo...

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange will be freed after striking plea deal with US authorities

Julian Assange has reached a deal with the United States Department...