Business travel company Corporate Travel Management (CTM) has confirmed it has made an offer for the travel arm of business process outsourcing company Capita Plc.
Following media speculation, Capita confirmed to investors earlier this week that it had received an unsolicited offer for its travel business from CTM.
“Given the stage of discussions, which are ongoing, there is no certainty that the disposal will complete or of the transaction consideration,” Capita said in a statement.
“Further announcements will be made if appropriate.”
CTM informed shareholders late yesterday that it has held preliminary discussions with Capita regarding its travel business.
“These have been early-stage discussions and there is no certainty as to whether a transaction will be agreed nor as to the terms or timing,” the company said in a statement.
“In this regard, CTM has not contemplated undertaking any acquisition this financial year.
“A further announcement will be made if appropriate.”
Bloomberg has given a valuation of up to £200 million for Capita’s travel business.
The news comes not long after CTM threatened VGI Partners with a lawsuit over explosive allegations made by the hedge fund. It also follows some positive half-yearly financial results for the travel company.