Media Release
Its Not Yet The "Last Minute"
26 October 2007
Webjet notes today's lodgement of an amended substantial shareholding notice from McNeil Nominees (AOT Group) disclosing that it has now acquired 19.9% of the issued shares in TVL. This stake is very likely to have a significant effect on the respective offers for TVL by Webjet and Wotif generally and, in particular, on the ability of either bidder to achieve a 90% or 75% minimum acceptance condition.
In addition, Webjet notes the following points, all of which it believes are material to the decision of TVL shareholders in assessing the competing bids from Webjet and Wotif.
- The last sale price of Webjet shares on ASX at the close of trading yesterday was $1.64. Based on Webjet's offer of $0.22 cash and 0.21 Webjet shares for each TVL share, the implied value of Webjet's offer (as at the close of trading yesterday) is $0.5644 per TVL share. Accordingly, the implied value of the Webjet Offer (as at the close of trading yesterday) is higher than the Wotif cash offer of $0.55 per TVL share (on the basis of a minimum acceptance of 75%) and only marginally less than the value of the corresponding Wotif all share alternative (based on the price of Wotif shares as at the close of trading yesterday). In Webjet's view, the current implied value of its offer raises real doubt about the present recommendation by the independent TVL directors to prefer the Wotif Offer, on the basis that they believe it is superior to Webjet's offer.
- Webjet still has a relevant interest in 19.9% of TVL shares through its pre-bid agreement with Co-investor, details of which have been previously disclosed to the market.
- The documentation for Webjet's offer has been despatched to TVL shareholders and is currently the only offer for TVL shares that is open for acceptance.
Webjet is awaiting TVL's Target's Statement in response to the Webjet offer, as well as Wotif's Bidder's Statement. Following the review of these documents, Webjet will consider its position. In particular, Webjet will be closely reviewing TVL's Target's Statement in response to the Webjet offer to ensure that all relevant matters are fully and fairly disclosed in that document.