Wotif.com Holdings (ASX:WTF) has received a takeover offer from U.S. travel industry heavy-weight Expedia group (NASDAQ:EXPE) that values it at A$703.1 million.
The offer is via a Scheme Implementation Agreement which would see a cash offer of A$3.06 cash per share; plus a A$0.24 special dividend paid by Wotif Group.
In total this is an A$3.30 effective offer for Wotif, a 30.7% premium to the volume weighted average price (VWAP) of Wotif shares during the five trading days.
Last share price of Wotif was $2.64 before the offer.
The premium offered is within "usual" takeover premium range. A year ago Wotif was trading at $5.00 and has met with growing competition from online travel sites.Whether the offer flushes out another could well depend on whether Wotif would fit with a local competitor.
