Australia's Flight Centre Is Looking at Acquisitions


Australian travel firm Flight Centre said on Friday it was looking at international acquisition opportunities which may be funded with debt and capital raisings if a deal goes ahead.

Flight Centre, which in July rejected a private equity joint venture, said it was currently considering opportunities in Australia, the United Kingdom, United States and India.

"Flight Centre may consider various funding models which could include debt and capital raising if a deal eventuates," the company said in a statement.

Flight Centre was responding to a local newspaper report which said it was considering an equity raising of up to A$100 million (US$89 million) to fund a range of overseas acquisitions.

The Australian Financial Review said Flight Centre was in discussions with investment banks about the share issue, which is likely to be conditional on it closing advanced negotiations to buy one or more corporate travel firms in the United States.

Earlier this week, Flight Centre outlined plans to expand in the U.S., Europe and India.

The firm also upgraded its earnings guidance, just a few months after rejecting a private equity joint venture with Pacific Equity Partners in July.