Economy

Wotif.com goes hard after travel.com.au

SmartCompany /

The battle to acquire listed online travel agency travel.com.au escalated to a new level yesterday after the announcement of a $50 million bid by Wotif.com to buy the business.

Wotif.com’s bid involves a cash payment of 0.50¢ per travel.com.au share, or a share offer of between 0.0893 and 0.1042 Wotif.com shares for each travel.com.au share.

Wotif.com joins online flight booking site Webjet in attempting to acquire travel.com.au. Webjet made a combined cash/shares offer for travel.com.au in early September valuing the company at about 45¢ a share, which was unanimously accepted by travel.com.au’s board.

Wotif.com’s chief operating officer, Robbie Cooke, said in a statement released to the ASX that both companies would benefit from the proposed acquisition.

“We are exited about the opportunities that will arise from combining both companies; we will be able to significantly enhance travel.com.au’s accommodation offering and we will be able to explore avenues to leverage off travel.com.au’s other travel products,” Cooke says.

In a short statement, Travel.com.au says it will consider the Wotif.com offer and has advised shareholders to take no action in the meantime.

Travel.com.au shares were trading at 60¢ at 11.40 am today after closing at 58¢ yesterday, while Wotif.com shares have dropped slightly from yesterday’s close of 5.34¢ to be worth $5.33 at 11.40am today.

It remains to be seen whether Webjet will make another offer for travel.com.au.

Advertisement
SmartCompany

SmartCompany is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.

We Recommend

FROM AROUND THE WEB