Corporate Travel Management Limited (ASX:CTD) entered into an agreement to acquire Corporate and Entertainment Travel Businesses in Australia and New Zealand of Helloworld Travel for AUD 175 million on December 15, 2021. The consideration is on debt free and cash free basis, subject to a net working capital and net debt adjustment. HLO will receive transaction consideration of AUD 100 million in cash and AUD 75 million in CTM shares escrowed 12 months from the date of completion. The cash component of the purchase price for the acquisition will be funded by the proceeds from a fully underwritten equity raising of approximately AUD 100 million comprised of an institutional Placement of 3.6 million fully paid ordinary shares at a fixed offer price of AUD 21 to raise AUD 75 million and a share purchase plan to eligible shareholders in Australia and New Zealand, to raise a maximum of AUD 25 million. The balance of acquisition consideration, being AUD 75 million, will be funded through the issuance of new CTM shares to Helloworld. These shares will be issued at the placement offer price of AUD 21, and will result in Helloworld ownership of CTM of approximately 2.5% following completion of the equity raising. The transaction is subject to customary conditions, including regulatory, Australian Competition and Consumer Commission clearance, customer approvals and the New Zealand Commerce Commission approval. As of January 4, 2022 ACCC has started informal review of the transaction. As of March 3, 2022 ACCC approved the transaction. As of February 21, 2022, NZCC approval has been received. Subject to the timing of these conditions being met, completion is expected to occur during the first quarter of the 2022 calendar year. As of February 15, 2022, the acquisition is expected to complete in March 2022. As of February 21, 2022, the transaction is expected to be completed by the end of March 2022. The cash consideration received will be used to repay debt, provide additional liquidity, capital management and to support growth opportunities in HLO's retail and leisure travel businesses as activity rebounds following the COVID-19 disruption. As of February 15, 2023. Working capital has been adjusted.

The equity raising is fully underwritten by Morgans Corporate Limited. Greenhill & Co., Inc. (NYSE:GHL) acted as financial adviser to CTM. Allens and HWL Ebsworth acted as legal advisers to CTM. Macquarie Group Limited (ASX:MQG) acted as financial advisor to Helloworld Travel Limited in the transaction. Ernst & Young acted as financial and due diligence advisor to Corporate Travel Management Limited.

Corporate Travel Management Limited (ASX:CTD) completed the acquisition of Corporate and Entertainment Travel Businesses in Australia and New Zealand of Helloworld Travel on March 31, 2022.