Another Tech Business Backs Into The ASX Through A Mining Company

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There have been a number of reverse takeover deals between tech and mining companies lately on the ASX, a trend which says a lot about Australia’s transitioning economy. There’s more on that here.

Today Perth-based online travel startup Holiday Planet finalised a backdoor listing on the ASX with mining explorer Red Gum Resources, after the minerals company entered into a trading halt earlier this week as it prepared to pivot away from mining and into tech. It has four exploration projects in Latin America with its main focus on copper and gold deposits.

The listing will be renamed Australian Travel Network and will have a combined market cap of $10 million.

The rising occurrence of reverse takeovers usually signals an economy in transition, where one sector has managed to access funds but another is seen to have more growth potential. In this case junior miners have created a shareholder base but the returns are no longer as good as the potential of a growing tech company.

“We are delighted to have negotiated this deal which we believe will breathe new life into the company as it seeks to regain its shareholders’ confidence and reinvigorate shareholder value,” Red Gum Resources chairman, Ray Shaw said.

For Holiday Planet, listing on the ASX opens up funding opportunities so it can grow and acquire other similar companies.

Travel Planet executive chairman Alan Dodson said listing on the ASX will assist his plans to buy two other travel companies and expand its customer base beyond Perth, building revenues from about $35 million to $100 million in the 2014 financial year.

On the tech side it is also looking to invest in virtual reality search options as well as enhance its transaction and ticketing experience.

Holiday Planet focuses on luxury travel deals, differentiating itself from Wotif and Webjet to appeal to the higher end of the market.

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