Today's Flight Centre Travel Group Ltd (ASX: FLT) share price news is headlined by a binding deal to sell its 47% Pedal Group stake for $61.7 million, with the transaction unanimously backed by independent directors and an expected accounting gain of around $15 million.
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What did Flight Centre Travel Group report?
- Signed a binding agreement to sell its 47% stake in Pedal Group for $61.7 million
- Divestment to the Turner Collective, a consortium linked to co-founder Graham Turner
- One-off accounting gain of about $15 million expected on completion
- No cash tax is anticipated due to existing losses offsetting the gain
- Shareholder vote scheduled for 14 May 2026 with completion expected soon after
What else do investors need to know?
This sale is part of Flight Centre's ongoing strategy to focus on its core travel businesses and streamline its portfolio. The company has recently exited other non-core assets, including Cross Hotels and Resorts, to sharpen growth in key segments such as cruises and meetings.
The deal is subject to shareholder approval, as required under ASX rules, and an independent expert has deemed the terms fair and reasonable. The group expects no significant regulatory headwinds and aims to complete the sale by mid-May.
What did Flight Centre Travel Group management say?
Non-Executive Chairman Gary Smith said:
Pedal is a strong business with a loyal and engaged customer base, and we are proud of what has been built through the joint venture. We believe the Turner Collective is well placed to support Pedal's next phase of growth. This divestment follows the sale of our Cross Hotels and Resorts business and reflects FLT's disciplined approach to capital allocation and portfolio simplification. The transaction crystallises a strong return on our investment and enhances our capacity to invest in our core global travel businesses and future growth initiatives.
What's next for Flight Centre Travel Group?
Flight Centre shareholders (excluding Graham Turner's interests) will vote on the proposal at an Extraordinary General Meeting slated for 14 May 2026. If approved, the capital realised will be used to further invest in its global travel operations and growth strategies.
Looking ahead, management remains focussed on maximising value from its core travel businesses while continuing to assess its investment portfolio for further simplification and enhanced shareholder returns.
Flight Centre Travel Group share price snapshot
Over the past 12 months, Flight Centre shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.
