Interesting Release by TVL the other day. Several months back...

Interesting Release by TVL the other day. Several months back there was an extended debate on HC about the merits of TVL vs ASC. Although the "race" is far from over, it does look like TVL is out in front by a couple of furlongs.

Anybody with the gift of reading between the lines on this announcement ...


TRAVEL.COM.AU LIMITED


lastminute.com (Australia) Pty Ltd (LMCAU) is the joint venture company that owns and operates the lastminute.com sites in Australia & New Zealand. LMCAU is owned 74.9% by travel.com.au (TVL) and 25.1% by Last Minute Network Limited, a 100% subsidiary of lastminute.com PLC (LMC).

LMC has a 'call option' on 25% of the equity in LMCAU. If LMC exercises the 'call option', reducing TVL ownership of LMCAU to 49.9%, TVL has a 'put option' to put TVL's remaining 49.9% shareholding to LMC. The call period is open from 17 May 2002 until 16 August 2002 and the 'call option' has not been exercised by LMC.

TVL and LMC have agreed to extend the 'call option period' so that it now expires on 16 November 2002 to allow further discussions between TVL and LMC on how the future relationship between the two companies should work.

The amount payable by LMC to TVL for the 25% shareholding under the 'call option' is based upon a process of agreement or independent valuations, but in any case is to be a minimum of A$1 million. If LMC exercises the 'call option', reducing TVL ownership of LMCAU to 49.9%, TVL has a put option to put its remaining 49.9% shareholding in LMCAU to LMC for A$7.5 million. The payments can be made by LMC in cash, by bank chq or by issuing shares in lastminute.com PLC. TVL's current book value of its investment in LMCAU is A$3 million.

Further Information:

David Tonkin
CEO
Phone 0417 894 707 / [email protected]