There have been a bunch of reverse takeovers on the ASX lately, with junior mining and exploration companies exercising backdoor listings with tech businesses.
Earlier this month Red Gum Resources, a Perth-based copper and gold mining junior, finalised a deal with online travel company Holiday Planet and is currently in the process of renaming itself Australian Travel Group. There’s more on that here.
At the time the company said it was looking to acquire a number of other companies in the travel space. After entering into a trading halt on Friday, Red Gum today revealed it will acquire travel wholesaler Asia Escape Holidays for $3.5 million.
Asia Escape Holidays specialises in destinations throughout Asia and the Indian Ocean and currently has annualised sales exceeding $30 million.
The acquisition is expected to take sales revenue for the newly formed Australian Travel Group to $75 million for 2014/15.
But it won’t be the last acquisition with the company confirming negotiations with other travel companies “are continuing as part of the travel aggregation strategy to achieve scale, efficiencies and greater distribution”.
Red Gum Resources chairman, Ray Shaw said the Asia Escape Holiday acquisition demonstrates the board’s determination to regain its shareholders confidence and generate shareholder value following its recent decision to steer Red Gum into the online tourism sector.