- Corporate Travel Management is in a trading halt again.
- Hedge fund VGI Partners announced it had increasing its short position.
- It told investors it has “serious additional concerns” about Corporate Travel.
Corporate Travel Management went into a trading halt today after hedge fund VGI Partners announced it had increasing its short position.
VGI last week criticised Corporate Travel’s (CTD) accounting processes and raised questions about the state of its cash-flow.
And this week it told investors it has “serious additional concerns” about Corporate Travel.
VGI Partners is now short 2,501,286 shares in Corporate Travel.
Today, Corporate Travel said it became aware of a 52-page report prepared by VGI Partners last night, six days following the company’s response to VGI Partners’ original report.
“It is CTD’s initial view that VGI Partners’ further report raises no substantive new issues,” Corporate Travel told the ASX.
“But it is not possible for CTD to fully review the further report or comprehensively respond by the time the market opens today.”
In response to the initial claims by VGI, Corporate Travel said: “We are concerned about the potential impact on shareholders from VGI making claims that, in our view, are not supported by the facts.”
The company said VGI Partners can only profit from its investment if there is a decline in the company’s share price.
The shares last traded at $20, down from a high of $33.87.
In August, posted full year statutory profit of $76.7 million, up 34%, on revenue of $372.2 million, up 14%.