Helloworld Limited
(ASX:HLO) has announced it will acquire a 50 percent stake in Mobile Travel Holdings for $14 million.
The company will fund the acquisition via a capital raising, seeking to raise $30 million at a bookbuild floor price of $4.25 per share.
MTA is a leisure and corporate travel agency and is a current corporate member of Helloworld.
Helloworld will have an option to acquire the remaining 50 percent of the business in 5 years’ time at a multiple of 7x historical earnings.
Helloworld Limited posted a net profit of $1.7 million at 30 June 2016.
