The sale of a significant chunk of online travel agency On the Beach has raised more than £40m for private equity firm Inflexion.

Despite the sale of 15.3m shares, the firm, which has UK offices in Manchester and London, remains the company’s largest shareholder – with 15.3m remaining shares, representing 11.8 per cent.

On The Beach founder and chief executive Simon Cooper is the second largest, with a 10.9 per cent stake.

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The Cheadle-based firm, established in 2004, carries more than 900,000 passengers each year, and fetched 280p per share, raising aggregate gross proceeds of approximately £42.9m.

It was bought by Inflexion for £73m in 2013.

Numis Securities is acting as sole global co-ordinator in connection with the placing. The placing shares are being offered by way of an accelerated bookbuild.