Travel.com.au was valued at AUD$31mm before a trading halt. The deal is for 10 cents in cash and 0.23 Webjet shares per Travel.com.au. This values the company at $42.3mm based on the last closing price of Webet or a 20+% premium.
Couple of questions from this:
- What will happen in the management area given the very recent announcement of a change at the top of Travel.com.au. Chris Meehan was due to take over from Adam Johnson as CEO in the new year. Webjet already have both a CEO (Richard Noon) and a Managing Director (David Clarke);
- What will happen to the Webjet board. Current Travel.com.au shareholders will come away with large stakes in Webjet and may want a board seat;
- What will happen to the Travel.com.au brand. Would be madness to lose the Lastmintue.com.au brand but surely we will see a merger of the Webjet and Travel.com.au brands; and
- It finally gives Webjet a position in the online hotel business with Lastminute.com.au. What will this mean for Lotsofbeds.
Thanks to the army of tipsters who sent through the story