Petre takes 20% stake in travel.com.au
Dotcom entrepreneur Daniel Petre has scooped up a near 20 per cent stake in travel.com.au and is set to take a seat on the online travel agent's board, sending its shares soaring.
The deal with Mr Petre will provide travel.com.au with an additional $1.8 million in funds, which will be invested in its websites, travel.com.au and lastminute.com.au.
Mr Petre's technology investment company, netus, will acquire a 10 per cent stake, or 8.63 million shares, in travel.com.au from the company's founding shareholder Amadeus.
Travel.com.au will then issue a further 10.66 million shares at 17 cents each to netus, leaving it with a 19.9 per cent shareholding in the company.
Mr Petre will also join travel.com.au's board following the completion of the transactions, with Amadeus's Bill Lawler resigning following the sale of the company's shareholding.
The news sent travel.com.au shares soaring or 8.5 cents or 45 per cent higher to 27 cents by 1206 AEST on Friday.
The placement will raise $1.8 million for travel.com.au, bringing the total capital raised by the company this year to $3.4 million following its recent one-for-seven rights issue.
Travel.com.au said the additional funds will be used to build and promote the websites.
"The netus investment comes at a time when travel.com.au is experiencing continued growth of its lastminute.com.au Australia brand," the company said.
"Total transaction volume sales in March 2006 were at a record level, driven by increased hotel and domestic flight bookings, and represented an increase of over 40 per cent on March 2005."
Mr Petre is the co-founder of technology-focused investment company ecorp, which is now a subsidiary of James Packer's Publishing & Broadcasting Ltd.
He recently founded netus with former eBay Australia and New Zealand managing director Alison Deans and Tim Hughes, who previously worked as a manager for online travel companies Cedant and Expedia.
Travel.com.au recorded a $1.99 million net loss for 2004/05, and has shed staff this year in a bid to cut costs and build profitability.
Netus's acquisition of shares from Amadeus is conditional on the approval of the Amadeus board.
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