Flight Centre Travel Group (ASX:FLT) announced its exit from the leisure cycling market, entering a binding agreement to divest its 47% stake in Pedal Group for $61.7 million.
The shareholding will be acquired by the Turner Collective, a consortium closely associated with Flight Centre’s founder, Graham Turner.
Pedal Group, a joint venture that encompasses the popular 99 Bikes retail chain and the wholesaler Advance Traders Australia, has been a non-core asset for the travel giant.
The divestment marks a definitive step in Flight Centre’s broader strategic programme to simplify its portfolio and reallocate capital towards its primary travel operations.
The transaction has received unanimous support from Flight Centre’s independent directors and follows a rigorous assessment by an independent expert, who concluded that the sale terms are both fair and reasonable.
From a financial perspective, the company expects to recognise a one-off gain upon the deal's completion.
However, the finalisation of the sale remains contingent on several regulatory conditions and formal shareholder approval, which is set to be decided at an extraordinary general meeting scheduled for next month.
The move reflects a tightening of corporate focus for the Brisbane-based group.