Been sifting through the presentation. On the surface it looks reasonable. Acquisition would position WEB at no. 2 for B2B globally and in Europe. Paying 10.5 times EBITDA and is c.25% EPS accretive FY17.
At the end of the presentation, management provided an update for July trading.
B2C up 28% PCP, Webjet up 24% and online republic up 44%. B2B , excluding JacTravel, up 77%, Sunhotels up 30% and LOH up 83%.
Unaudited result FY17:
EBITDA $81.5million and NPAT $59.7 million. BDO Auditor numbers EBITDA $70m and NPAT $51.9m.
All in all irrespective of the disagreement between the auditors, management has done a wonderful job to date and I'm confident JacTravel will be a winner. I certainly will be participating in the rights issue. Should see a nice SP bounce when it resumes trading IMO.
WEB Price at posting:
$11.10 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)