Carlyle, GIC Back Away from AmEx Global Business Travel Deal
May 09 2020 - 10:11AM
Dow Jones News
By AnnaMaria Andriotis and Miriam Gottfried
Private-equity firm Carlyle Group Inc. and Singapore
sovereign-wealth fund GIC Pte. Ltd. are backing away from a deal to
take a 20% stake in American Express Global Business Travel, whose
revenue has plummeted as a result of the coronavirus pandemic,
according to people familiar with the matter.
The deal, announced in December, values the company at $5
billion including debt. It was scheduled to close Thursday but
representatives for Carlyle and GIC informed AmEx Global Business
Travel on Wednesday they wouldn't participate in the closing, the
people said.
AmEx Global Business Travel, which is 50%-owned by American
Express Co., offers airfare and hotel-booking services mostly to
large and midsize businesses. In 2014 the credit-card giant sold
the other half to a group led by investment firm Certares. Carlyle
and GIC, along with a group of others, agreed to purchase a portion
of that stake last year.
An entity acting on behalf of the sellers filed a motion this
past week in Delaware Chancery Court against Carlyle and GIC,
calling for it to compel the duo to proceed with the purchase.
If the deal is scuttled, it would be the latest high-profile
transaction to fall apart as a result of the pandemic. On May 4, L
Brands Inc. and private-equity firm Sycamore Partners said they
were scrapping plans to take Victoria's Secret private, a decision
that came after Sycamore filed a lawsuit to try to cancel the
deal.
Write to AnnaMaria Andriotis at annamaria.andriotis@wsj.com and
Miriam Gottfried at Miriam.Gottfried@wsj.com
(END) Dow Jones Newswires
May 09, 2020 09:56 ET (13:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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