HindustanTimes Wed,01 Oct 2014

Expedia says to pay $660 mn for Australia's Wotif

Reuters  Sydney, July 07, 2014
First Published: 10:11 IST(7/7/2014) | Last Updated: 10:12 IST(7/7/2014)

US travel giant Expedia Inc said on Monday it agreed to buy Australian online travel group Holdings Ltd for A$703 million ($660 million) in cash, sending Wotif's shares 25% higher.


Queensland-based Wotif said its directors, who own 20.2% of the company's shares, and co-founder Andrew Brice, who has 15.5%, plan to vote in favour of the deal.

The purchase gives Expedia an established base to grow in the Asia-Pacfic region while providing a lifeline to Wotif as it struggles with weak hotel bookings and declining profits.

Expedia's A$3.30 per share offer is a 14% premium to Wotif's most recent closing price of A$2.90 and higher than levels traded since Dec. 17, when the company issued a profit warning.

Expedia's Nasdaq-listed shares last closed up 2.4% at $82.21.

more from Business

Rajan holds interest rates, EMIs unlikely to dip soon

The Reserve Bank of India (RBI) kept rates on hold on Tuesday despite pressure from industry and government hopes that the central bank would lower borrowing costs to aid an incipient economic recovery.
Most Popular
Copyright © 2014 HT Media Limited. All Rights Reserved