Flight Centre (ASX:FLT) concludes AU$180m placement, shares fly high on ASX

Follow us on Google News:
 Flight Centre (ASX:FLT) concludes AU$180m placement, shares fly high on ASX
Image source: Pexels
                                 

Highlights

  • Flight Centre Travel Group (ASX:FLT) concluded its institutional placement to raise AU$180 million.
  • Proceeds will be utilised to fund the recently revealed acquisition of a 100% interest in Luxury Travel Holdings Limited (Scott Dunn).
  • A subsequent SPP is anticipated to raise up to AU$40 million, the company’s press release says.
  • FLT aims to grow its leisure presence in the US and UK luxury markets.

Australian travel agency Flight Centre Travel Group (ASX:FLT) has successfully finished an institutional placement of new fully paid ordinary shares that raised AU$180 million. The company further plans to proceed with a Share Purchase Plan (SPP) to raise an extra AU$40 million.

The placement and SPP are likely to assist Flight Centre with the acquisition of Scott Dunn, a prominent UK-based luxury travel brand.

Flight Centre’s placement details

Nearly 12.3 million New Shares are being issued under FLT’s placement at a fixed price of AU$14.60 per New Share. The New Shares will rank just as existing ones on issue, the company informed. The placement, which raised AU$180 million, was firmly supported by existing as well as new institutional investors.

Proceeds are expected to assist in the acquisition of a 100% interest in Scott Dunn.

Up next- SPP

FLT is now preparing to conduct a SPP, which might raise up to AU$40 million (with the capacity to accept oversubscriptions), the company says. Eligible shareholders will have the chance to apply for up to AU$30,000 worth of FLT shares pursuant to this non-underwritten SPP.

The press release further mentions that each share will be offered at (the lower of) AU$14.60 and at a 2% discount to the volume-weighted avg. price of FLT shares traded on the five trading days up to (and incl.) the closing date of the SPP.

The SPP closing date, as per the company, is 6 March 2023. Shares will be allotted on 14 March 2023.

Scott Dunn acquisition

Based in the UK, Scott Dunn is a prominent luxury travel brand that focusses on tailor-made luxury holidays. FLT announced its acquisition for an enterprise value of AU$211 million.

Image source- Lukas | Pexels

FLT says that the acquisition is in accordance with FLT’s objective of growing in its core markets as well as creating an international luxury collection of travel brands-

  • The acquisition might help FLT enter the UK and US luxury travel market via a reputed and scalable brand.
  • It will also add Scott Dunn’s high value clientele to FLT’s portfolio.
  • It might deliver attractive financial returns for FLT.
  • The company also gains a high-quality management team through the acquisition.

It is also being said that the acquisition can create modest net corporate costs as well as supplier synergies. Completion of the acquisition is not subject to any circumstances and might conclude before February 2023 ends.

Share performance on ASX

After the trading halt lifted on 1 February 2023, FLT shares traded at AU$17.5, up 10.5% with a market capitalisation of AU$3.16 billion and a trading volume of over 3 million. From 1 January 2023 to date, FLT shares have grown by more than 22%. (All figures as per ASX data, noon 1 February 2023).

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK