webjet bids for travel.com.au

Sydney - Thursday - September 6: (RWE Aust Business News) -
Webjet (ASX:WEB) and travel.com.au (ASX:TVL) today announced a proposal
under which Webjet would acquire all the issued shares in TVL under a
cash and scrip takeover offer.
Webjet will offer TVL shareholders 10c cash and 0.23 Webjet
shares for each TVL share.
Conditions include Webjet acquiring 90pc of TVL shares,
receipt of all regulatory approvals, including any approval required from
the Travel Compensation Fund and no restraint that adversely affects
Webjet's offer.
Webjet's offer will extend to any new TVL shares issued during
the offer period due to the exercise of TVL options in accordance with
their terms.
Based on Webjet's closing price of $1.41 on 5th September 2007,
the implied value of Webjet's offer is 42.4c per TVL share.
This values TVL at approximately $42.3 million, excluding
unexercised TVL options.
It represents a premium of 29.3 per cent to the three month VWAP
of TVL shares prior to the date of this announcement.
The cash component of Webjet's offer will require Webjet to pay a
total of approximately $10m to TVL shareholders.
This will be funded from internal cash reserves.
Following completion of the takeover, TVL shareholders will own
approximately 23.4pc of Webjet's expanded capital.
TVL's independent directors have evaluated the proposed offer and
have unanimously agreed to recommend Webjet's offer, in the absence of a
superior proposal and subject to the independent expert to be engaged by
TVL concluding that Webjet's offer is fair and reasonable.
TVL directors believe that the offer proposed by Webjet provides
TVL shareholders with the opportunity to benefit from the
increased scale and profitability that a combination of the two
businesses would achieve.
TVL and WEB shares were in a trading halt and last traded at 35c
and $1.41 respectively.