Online travel booking company Wotif.com Holdings Limited (ASX:WTF)
has scored a $703 million takeover offer from US online travel giant Expedia Inc (NASDAQ:EXPE).
Expedia has offered Wotif $3.06 cash per share and a special dividend of 24 cents, representing a 31 per cent premium to the company’s trading price over last week.
Wotif directors have backed the deal, entered into a scheme implementation agreement with Expedia and asked shareholders to accept the takeover offer.
Chairman Dick McIlwain says the offer is in the best interests of shareholders and the company will be the best positioned for the future through the proposed transaction.
Wotif.com was one of the worst performers in the S&P/ASX 200 index over the 2014 financial year with its stock almost halving in value over the 12 months to the end of June 2014.
Wotif.com’s net profit dropped 18 per cent to $22.6 million in the first half of the 2014 financial year.