Travel wholesaler eyes stock markets

By ROB O'NEILL

New Zealand travel wholesaler Aspac Vacations will list on the Australian and New Zealand Stock Exchanges following last week's merger with Australia's Pacific Island Travel Centre.

The companies are now trading as Pacific International.

The listing is expected to be complete by the end of May, says Pacific International's deputy managing director, Andrew Chalmers. Before then, he expects to be able to announce further overseas acquisitions. "The final details haven't been released yet," Mr Chalmers says, "but in broad terms the listed company will have revenues of $600 million, a market capitalisation between $125 million and $150 million and 500 staff."

Sydney-based Mr Chalmers is also Pacific International's head of acquisitions. He says US companies will definitely form part of the listing and he is "fairly confident" of adding a UK wholesaler.

Mr Chalmers cannot reveal the names of the parties to these negotiations because of confidentiality agreements, but these restrictions should be lifted when the listing process starts in the next 10 days.

Aspac's general manager of finance, Roger Hoskins, says the listing will help the merged company to expand.

Aspac Vacations is a travel wholesaler that sells outbound to the world, including Australia, he says. Pacific Island Travel Centre is an outbound travel wholesaler from Australia with very similar interests. Both also sell into the other's geographies.

Mr Chalmers says some of the funds raised will be applied to the company's technology developments through another acquisition, Greenstone Technologies, which specialises in wholesale travel systems.

The focus and management of Aspac Vacations, which employs 90 staff in Auckland and Christchurch, will not be affected by the merger, says group managing director Siva Subramaniam. Pacific International will add value to Aspac's operations through increased buying power, foreign exchange management and technology.

The merged group will be the largest Australasian wholesaler of travel to the South Pacific, which Mr Subramaniam expects to become a major focal point for international travel following the Sydney Olympics.