Travelport To Begin Process of Selling Its Stake in Orbitz
Travelport, which owns 48 percent of Orbitz Worldwide, will sell part of its stake in the Chicago-based online travel agency, potentially signaling a divestment.
A Travelport spokeswoman said “our Orbitz equity stake is no longer a strategic investment for us…As a result, we believe it is prudent to monetize the Orbitz stake over time and reallocate the proceeds to further Travelport’s strategic business plans. Following the sale, we will remain a substantial equity holder in Orbitz.”
On Monday, Orbitz announced an underwritten public offering of 7.5 million shares of its common stock by an affiliate of Travelport. Underwriters have a 30-day option to buy up to an additional 1.125 million shares from Travelport. Orbitz will not receive proceeds from the offering, it said.
After the offering, Travelport’s stake in Orbitz would dwindle to 37.6 percent, or 36.5 percent if the option is exercised, according to a prospectus filed with the SEC.