Flight Centre Travel Group (ASX: FLT) has agreed to divest its 47% shareholding in Pedal Group to the Turner Collective for $61.7 million, aligning with its strategy to focus on core travel businesses. The sale requires shareholder approval and is expected to complete next month, with FLT anticipating a one-off accounting gain of approximately $15 million.
- FLT to sell 47% stake in Pedal Group for $61.7 million
- Transaction supports portfolio simplification and strategic focus on travel
- Sale subject to shareholder approval at May 14 Extraordinary General Meeting
- Independent expert deems terms fair and reasonable
- FLT expects a $15 million accounting gain with no cash tax impact
Transaction Details and Strategic Context
Flight Centre Travel Group Limited (ASX:FLT) has entered into a binding agreement to sell its approximately 47% stake in the Pedal Group joint venture to the Turner Collective, a consortium linked to Graham Turner and his family. The deal values FLT's interest at $61.7 million and is expected to complete shortly after shareholder approval is obtained at an Extraordinary General Meeting (EGM) scheduled for May 14, 2026.
Pedal Group comprises the 99 Bikes retail chain and Advance Traders Australia, a wholesaler. The transaction is part of FLT's ongoing portfolio simplification and strategic reallocation efforts aimed at concentrating capital and management focus on its core travel platforms and long-term growth priorities.
Board and Independent Expert Support
The sale has unanimous support from FLT's independent directors. An independent expert report prepared by BDO has assessed the transaction and concluded that the terms are fair and reasonable. The transaction is subject to ASX Listing Rule 10.1 due to the related-party nature of the deal and requires shareholder approval, excluding interests associated with managing director Graham Turner.
FLT non-executive chairman Gary Smith highlighted that while Pedal Group is a strong business with a loyal customer base, the divestment aligns with FLT's disciplined capital allocation strategy. He noted that the Turner Collective is well positioned to support Pedal's next growth phase. This sale follows FLT's earlier divestment of its Cross Hotels and Resorts business, reflecting a consistent approach to portfolio management.
Financial Impact and Next Steps
FLT expects to recognise a one-off accounting gain of approximately $15 million on completion of the sale, with no anticipated cash tax impact due to offsetting revenue and capital losses. Completion is also subject to regulatory conditions, including clearance from the Australian Competition and Consumer Commission (ACCC), which are not expected to impede the transaction.
The proposed sale follows a six-month period during which FLT and the Turner family engaged advisors to explore future ownership options for Pedal Group. The Turner Collective's proposal was ultimately deemed acceptable by FLT's independent directors.
This divestment complements FLT's recent financial performance, including a record first half of FY26 with total transaction value reaching $12.5 billion and profit growth, supported by strategic portfolio reshaping and digital initiatives, as detailed in the company's record half-year results in February 2026.
Bottom Line?
The Pedal Group sale marks a clear step in Flight Centre's strategy to sharpen its focus on core travel businesses, with shareholder approval and regulatory clearance key to finalising the transaction.
Questions in the middle?
- How will Flight Centre redeploy capital freed up from the Pedal Group divestment?
- What impact might the sale have on Pedal Group's operational strategy under the Turner Collective?
- Could this portfolio simplification signal further divestments or acquisitions in FLT's travel segments?