Corporate Travel Management Limited (CTM, ASX code: CTD) announced the acquisition of Lotus Tours and Travel Group (Lotus), headquartered in Hong Kong.
CTM will be acquiring 75.1% of Lotus with CTM Asian partners Ever Prestige Investments Limited acquiring the remaining 24.9%. The HKD 300 million acquisition will be effective 2nd October 2018.
Lotus has operated for over 60 years as one of the largest Travel Companies in Greater China. The company has a TTV of HKD 6 billion in 2017.
After the acquisition, CTM Asia becomes the largest player in Hong Kong serving Greater China market. The combined company will become a leader in Hong Kong serving Greater China with TTV of approximately HKD15b.
CTM Managing Director Mr. Jamie Pherous said “Lotus is a long standing and highly regarded travel leader in Hong Kong. They meet our strict acquisition criteria, and like CTM Asia, are leaders in travel in the region and enjoy high client and staff retention. Our Asian senior leadership teams are very familiar with each other.”
In commenting on the opportunities, Mr. Pherous said: “We are delighted to have Lotus become a key part of our Asian business. Together, we will become the largest player in Hong Kong serving the Greater China market and will be well positioned to enhance our client offering, technology and expertise in this market”.
CEO of Lotus, Patrick Kong said: “We have known the leadership team of CTM Asia for many years and through their partnership with CTM, have watched CTM Asia build a very strong growth business based on highly personalised service delivery with best-in-class technology solutions.”