Australia's Helloworld Travel climbs most in a week on $124.3 mln divestment

Helloworld Travel

14/12/2021 23:47

** Shares of Australian travel distribution firm Helloworld
Travel Ltd  HLO.AX  jump as much as 7.9% to A$2.47, marking
their biggest intraday pct jump since Dec. 7
    ** Co says it is selling its corporate and entertainment
travel businesses in Australia and New Zealand to Corporate
Travel Management Ltd  CTD.AX   urn:newsml:reuters.com:*:nASX7QcWsw 
    ** Divestment for an enterprise value of A$175 mln ($124.29
mln), consisting of A$100 mln in cash and A$75 mln in CTD shares
    ** Helloworld will use funds to repay debt, support growth
opportunities as activity rebounds after COVID-19 disruptions,
among others
    ** Co expects to record a profit on sale
    ** HLO stock down 9.1% this year, as of last close     

($1 = 1.4081 Australian dollars)

 (Reporting by Harshita Swaminathan in Bengaluru)
 ((Harshita.Swaminathan@thomsonreuters.com))