Flight Centre to Sell Bike Business for $61.7M to Focus on Travel Growth
Flight Centre Travel Group (ASX: FLT) has announced it will divest its circa 47% stake in Pedal Group to the Turner Collective for $61.7 million, marking the latest step in the company’s portfolio simplification strategy. The Flight Centre Pedal Group sale, which values FLT’s interest in the joint venture comprising 99 Bikes and Advance Traders Australia, is expected to deliver an accounting gain of approximately $15 million upon completion. The transaction has received unanimous support from FLT’s independent directors, with an independent expert confirming the terms are fair and reasonable.
Flight Centre to divest Pedal Group stake for $61.7 million
FLT has entered into a binding agreement to sell its entire shareholding in the Pedal Group cycle joint venture to a consortium associated with Graham Turner and his family. The $61.7 million consideration reflects FLT’s decision to exit a non-core asset and concentrate capital on its global travel operations.
The divestment requires shareholder approval at an Extraordinary General Meeting scheduled for 14 May 2026, with completion anticipated on or after 15 May 2026. Interests associated with managing director Graham Turner will be excluded from the vote due to related party rules under ASX Listing Rule 10.1. The transaction is also subject to Australian Competition and Consumer Commission clearance and other customary conditions.
Notably, FLT expects no cash tax liability from the sale, as the resulting capital gain will be fully offset by existing revenue and capital losses. BDO has prepared an Independent Expert’s Report assessing the transaction, which has been lodged with the ASX alongside the notice of meeting.
| Transaction Detail | Value |
|---|---|
| Sale Consideration | $61.7 million |
| FLT Stake Being Divested | ~47% |
| Expected Accounting Gain | ~$15 million |
| Cash Tax Impact | Nil |
| Extraordinary General Meeting | 14 May 2026 |
| Expected Completion | On or after 15 May 2026 |
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What is portfolio simplification and why do companies do it?
Portfolio simplification refers to the strategic process whereby companies divest businesses or assets that fall outside their core operational focus. This allows management to concentrate financial resources, expertise, and attention on activities that generate the strongest returns and align most closely with long-term objectives.
For investors, portfolio simplification often signals improved capital discipline. By exiting non-core segments, companies can redeploy proceeds into higher-growth opportunities within their primary markets, potentially enhancing shareholder value through better resource allocation. The practice also reduces management complexity, allowing leadership teams to focus on fewer, more strategically relevant business lines.
FLT has been actively reshaping its portfolio over recent periods, divesting non-core assets, closing underperforming brands, and accelerating investment in high-growth travel segments such as cruise and meetings and events. The Pedal Group sale represents a continuation of this strategic reallocation programme.
Strategic context behind the divestment
FLT’s ongoing portfolio reshaping
The Pedal Group divestment forms part of a broader capital allocation strategy that has seen FLT systematically exit businesses outside its core travel operations. The company previously divested Cross Hotels and Resorts as part of the same simplification programme, redirecting focus toward platforms that align more closely with its global travel expertise.
Recent portfolio actions undertaken by FLT include:
- Divestment of Cross Hotels and Resorts to concentrate on travel platforms
- Closure of underperforming travel brands to improve operational efficiency
- Selective business pivots to realign offerings with market demand
- Accelerated investment in cruise and meetings and events to capture growth in key sectors
- Formal review of Pedal Group ownership initiated six months prior to this transaction
FLT non-executive chairman Gary Smith stated the company’s actions were intended to concentrate capital and management attention on core travel platforms and long-term growth priorities. The divestment follows formal engagement of advisors six months ago to review future ownership options for Pedal Group, during which FLT indicated it would consider proposals for its stake if deemed in shareholders’ best interests.
Gary Smith, FLT Non-Executive Chairman
“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.”
Transaction background and structure
The Turner Collective, a consortium associated with Graham Turner and his family, initiated the acquisition proposal through 99 Bikes founder and Pedal Group chairman Matt Turner. FLT’s independent directors assessed the proposal and ultimately deemed it acceptable for shareholder consideration.
Due to the related party nature of the transaction, shareholder approval is required under ASX Listing Rule 10.1. Graham Turner’s interests will be excluded from the vote to ensure independent shareholder assessment of the proposal’s merits. The structure provides governance safeguards for minority shareholders, reinforced by BDO’s independent expert assessment confirming the terms are fair and reasonable.
Completion remains subject to ACCC clearance and other customary conditions that FLT does not expect will present impediments to finalising the transaction.
Key transaction details and timeline
The commercial terms provide FLT with $61.7 million in proceeds from its circa 47% interest in Pedal Group, which operates the 99 Bikes retail chain and Advance Traders Australia wholesale business. The expected $15 million accounting gain upon completion will not trigger cash tax liability, as existing losses offset the capital gain.
FLT shareholders will vote on the proposal at an Extraordinary General Meeting on 14 May 2026, with completion anticipated immediately following approval on or after 15 May 2026. The Notice of Meeting and Independent Expert’s Report were lodged with the ASX on 8 April 2026.
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Investment outlook following the sale
The Pedal Group divestment releases $61.7 million in capital for redeployment into FLT’s core global travel businesses and future growth initiatives. Management has identified cruise and meetings and events as key sectors for accelerated investment, positioning the company to capitalise on growth opportunities within its core competency.
Gary Smith acknowledged Pedal Group as a strong business with a loyal and engaged customer base, noting FLT’s pride in what has been built through the joint venture. However, the divestment aligns with FLT’s strategic decision to concentrate resources on travel platforms where the company maintains competitive advantages and scale.
The transaction removes management distraction from a non-core retail business, allowing sharper focus on travel sector opportunities. Shareholders will vote on the proposal next month, with completion expected shortly after should the resolution receive the required approval.
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