CORPORATE TRAVEL MANAGEMENT TAKES OVER INTERNATIONAL RIVAL

Written on the 20 November 2013

CORPORATE TRAVEL MANAGEMENT TAKES OVER INTERNATIONAL RIVAL

 

CORPORATE Travel Management (ASX:CTD) has bought 75.1 per cent of Hong Kong travel company Westminster.

 

The purchase cost $49.2 million, which the Brisbane-based company will raise through a capital raising offer underwritten by Morgans.

Managing director and founder, Jamie Pherous (pictured), will be a significant participant in the offer, but is not in a position to take up his full entitlement.

Westminster Travel is Asia’s leading travel management company, operating in Hong Kong, Singapore, China, Macau and Taiwan for 40 years.

Two of the company’s major shareholders will acquire the remaining 24.9 per cent.

Speaking with Brisbane Business News today, Pherous explains that CTM has been working closely with Westminster for two years, collaborating on networking clients and joint tenders together, before the strategic acquisition.

“Some agencies who move into Asia have huge issues integrating culture, but we’re proudly keeping the existing Westminster management team because we’ve been working with them for two years,” Pherous says.

“When I’m with their senior management team it’s like I’m sitting with my own.

“They’re clearly the best in their region. Because they’ve got a lot of western education they have a great mix of understanding western business and regional culture.”

The company is forecasting underlying EBITDA (earnings before interest, taxation, depreciation and amortization) of $28 million including the five month contribution from the share in Westminster.
Pherous says his focus for the remainder of the financial year will be on networking and growth.

“We’re focused on how we get the business to grow, and secondly to share best practice and look after that management team,” he says.

“The experience of that team is so excellent and they’re doing a great job.

“The next six months will simply be looking after that team, and in the short term there will be no movement of staff. Long term we will be looking at having Westminster and CTM staff collaborating and sharing ideas.

“Our point of difference was to be a global travel management company. We've now got a terribly compelling case for clients who need an Asia solution. It’s the sort of tenders and business we can now win together that will be exciting.

“It’s going to be a different company in FY15.”

 


Latest News

CROMWELL CALLS FOR FULL DISCLOSURE FROM INVESTA

CROMWELL Property Group (ASX:CRM) has claimed Investa Office Fund (ASX:IOF) has not disclosed material information ab...

FRAUD CAUSES SILVER CHEF PROFIT SLIDE

EQUIPMENT financier Silver Chef (ASX:SIV) has seen its half-year profit slide due to fraud.

The Brisbane company r...

MEGAPORT QUADRUPLES REVENUE AND INVESTS IN EXPANSION

MEGAPORT (ASX: MP1) increased revenue 345 per cent to $4.46 million in the six months to 31 December 2016, the com...

IN-STORE VETS BOOST GREENCROSS' PROFIT

GREENCROSS Limited (ASX: GXL) shares lifted 5 per cent in trading today after the Brisbane-based company posted a ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter