Media Release
Webjet Secures Conditional Placement Commitments To Raise $15 Million
Webjet is pleased to announce that it has today secured commitments to place 10 million fully paid ordinary shares at $1.50 per share to raise $15 million additional equity capital (before expenses). The shares have been placed to a range of institutional and other investors to whom the disclosure requirements in Chapter 6D of the Corporations Act do not apply. Bell Potter has acted as Webjet's agent in managing and concluding the placement.
The placement of the new shares and the receipt of the subscription proceeds from the subscribers is conditional only on Webjet completing its intended takeover offer for travel.com Limited (TVL), details of which were announced to ASX on 6 September 2007.
Webjet provides the following further information for the purpose of Listing Rule 3.10.3.
- Webjet intends to use the funds raised under the proposed placement to partly fund the cash consideration under an improved offer Webjet intends to propose for TVL. Details of Webjet's improved offer will be announced to ASX shortly.
- Webjet will not be required to seek shareholder approval for the proposed placement on the basis that it does not exceed the 15% cap in Listing Rule 7.1 (and in any event exception 6 to Listing Rule 7.2 applies).
Further details of the placement arrangements will be disclosed in Webjet's Bidder's Statement.
Commenting on the proposed placement Webjet's Managing Director, Mr David Clarke, stated:
"Webjet is delighted with the strong level of institutional investor and market support for its proposed placement. The funds raised in conjunction with existing resources, means Webjet is in a strong and flexible position to consider the nature and structure of a revised bid."