HT&E signals sale of Luxury Escapes shares
In a market announcement this morning, ASX-listed Here There and Everywhere (HT&E) has indicated that a conditional agreement has been signed for the potential sale of its shares in Luxury Escapes (Lux Group Limited).
The agreement will see Auctus Asset Management (AVC) purchase the shares, with plans to further invest primary capital in Luxury Escapes “via a Convertible Note to support future growth”.
The deal is dependent on several matters, including AVC’s ability to raise “minimum funding of $60 million, with a cap of 75 days for the funding to be raised, unless an extension is applied”.
It will also be dependent on the number of shareholders who decide to participate, and the amount of cash raised for the the deal by AVC.
Should the agreement go ahead, HT&E could receive proceeds of u”p to $23.2 million”, yet under the terms, only “a portion of HT&E’s shares may be sold with a corresponding reduction in the proceeds received”.
The group said that further updates on the sale will be provided in due course, including whether the agreement becomes unconditional and the amount of sale proceeds.
Earlier this year, HT&E freed up more capital with the sale of its 25% stake in mobile messaging software group Soprano Design, in what was worth up to $149 million.
Last month HT&E reported a 21% increase in group revenue to reach $109.9 million in its FY21 financial results.
Earlier this year, CEO Ciaran Davis said the company has “a very strong balance sheet”, putting it in a “fortunate position” when looking at potential acquisitions, with this further sale bringing into question whether funds are being freed up for potential acquisitions.
Last month, HT&E’s core radio asset, ARN rebranded after previously trading as Australian Radio Network.
Luxury Escapes last year released two campaigns in partnership with Tourism Australia, encouraging domestic travel through ‘Holiday Here This Year’.
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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