Australia’s Wotif bids A$50 mln for Travel.com
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Australian accommodation Website firm Wotif.com Holdings Ltd (WTF.AX: Quote, Profile, Research) said on Monday it planned to make a takeover offer for online travel agency Travel.com.au Ltd (TVL.AX: Quote, Profile, Research), topping a rival bid.
Wotif.com said in a statement it would offer 50 cents cash or a scrip alternative of between 0.0893 and 0.1042 of its own shares for each Travel.com share. The cash offer values Travel.com.au at A$49.8 million ($44 million).
That is higher than a A$42.3 million offer for Travel.com.au from online travel company Webjet Ltd (WEB.AX: Quote, Profile, Research) last month.
Travel.com.au management had recommended the Webjet offer, in the absence of a superior bid emerging.
On Monday, Wotif.com said its offer was superior to Webjet’s.
“Our offer provides a higher price but also gives Travel.com.au shareholders full flexibility to accept either 100 percent cash for their shares or to retain a shareholding in the combined group,” the company said in a statement.
It said the takeover would generate attractive cost savings and would boost earnings for the 2009 financial year, the first full year after the acquisition.
Wotif.com offers last-minute accommodation deals in 40 countries, according to its website, while Travel.com.au offers flights, accommodation and travel packages.
($1=A$1.13)
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