Under current CEO Dana Dunne, eDreams Odigeo has been going through something of a turnaround, swapping years of losses for profit. At this stage we don't know the identity of the potential buyer(s) or what they want to do with the business.
Barcelona-based online travel company eDreams Odigeo has announced a strategic review of the business, which may lead to the sale of the company.
The firm, which completed an initial public offering (IPO) on the Madrid Stock Exchange in 2014, said the move was prompted by “unsolicited indications of interest from potential investors.”
Ardian and Permira, the private equity shareholders that floated the company, still own a sizeable stake of it (around 47 percent) and might be looking for an exit, although it is not known whether the suitor wanted to purchase the whole or part of the company.
The review process remains at an early stage and eDreams Odigeo said that there was no guarantee the interest expressed would lead to a formal proposal.
At the same time as announcing the review, the company also said it was increasing its adjusted profit guidance for both 2018 and 2020 on the back of the increased scale of the business and better terms with suppliers.
eDreams Odigeo has enjoyed a torrid time on the stock market since its IPO. On October 24, 2014 the stock was suspended after Iberia pulled its flights from sale prompting a dramatic fall in its value. There was also a disagreement with Ryanair, which was only recently settled.
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Photo credit: eDreams Odigeo specializes in selling flights. The company is undergoing a strategic review. Christopher Jasper / Bloomberg