SHAREHOLDERS HAPPY TO FUND CTD EXPANSION
Written on the 22 January 2014
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).
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.”
CTD shares are trading up 0.7 per cent at $5.50 this morning.