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GDS firm moves to cut debt
Travel technology firm Travelport is to list on the London Stock Exchange (LSE) in a bid to raise $2 billion to halve its debt.
The decision to go public means venture capitalists Blackstone will relinquish control of the company it bought from Cendant for £2.6 billion in 2006.
Gordon Wilson (pictured), Travelport GDS's president and chief executive, told ABTN the decision to recapitalise would have no affect on the company's ability to invest in its products.
"Investing in our business solution is not a problem. We've recently invested some $125 million in our universal desktop and other such projects and we will continue to invest."
Analysts said the move - the largest on the LSE for nearly two years - was a sign that the equity market was starting to loosen after months mired in recession.
The Government of Singapore Investment Corp (GIC) - the country's Singapore's sovereign wealth fund - has agreed to buy $225 million worth of new shares at the same time as the IPO,agreeing to a lock-up of 180 days.
GIC will hold 7.19% in the group after the capital hike, Travelport said.
News agency Reuters reported that UBS was the sole sponsor of the deal, while Credit Suisse, Deutsche Bank were the joint global co-ordinators, with Barclays Capital and Citigroup as joint bookrunners.