After its shares got smashed last financial year, Australian listed travel site Wotif.com could be bought out by travel giant Expedia for $703.1 million.
Wotif was one of the ten worst performers on the ASX in 2013/14, with its share price plummeting 46.5% over the 12 months to June 30.
Under the Expedia deal, which is subject to both shareholder and court approvals, Wotif.com shareholders will receive a total cash consideration of $3.30 a share, which includes $3.06 per share plus a special dividend of $0.24.
Wotif shares closed at $2.64 on Friday before the announcement was made.
The company directors as well as major shareholder and co-founder Andrew Brice, who collectively hold a 35.7% stake in Wotif, are unanimously recommending shareholders accept the Expedia offer in the absence of a better deal.
“The Wotif Group board has unanimously concluded that a sale of the company at a significant premium to current market value, and on terms which we believe reflect fair value is in the interests of all shareholders,” Wotif chairman Dick McIlwain said.
The company will release its full year financial results in mid August but is estimating net profit after tax will be $43 million.