Wotif.com Holdings Limited (WTF)

By Jason Fittler

Wotif.com Holdings Limited (WTF) is a provider of online accommodation, activity and flight booking services. 

The company represents over 23,500 properties in more than 69 countries. It has headquarters in Australia and offices in New Zealand, the United Kingdom, Thailand, China, Indonesia, Hong Kong, Malaysia and Singapore, Argentina, Columbia, Czech Republic, Italy, Japan, the Philippines, Spain, South Africa and Vietnam.

WTF announced that it has entered into a Scheme Implementation Agreement with the Expedia group. Under this agreement it is proposed that Expedia will acquire 100% of the fully-diluted share capital in Wotif Group by way of a Scheme of Arrangement.

If the Scheme is implemented, Wotif Group shareholders will receive total cash consideration of A$3.30 per Wotif Group share comprising of: A$3.06 cash per share; plus a A$0.24 special dividend paid by Wotif Group on or before the Scheme Implementation Date (Special Dividend), which is expected to be fully-franked.

The total cash consideration of A$3.30 per share, excluding the potential benefit of franking credits associated with the Special Dividend, values Wotif Group's fully diluted equity at A$703.1m.

On the back of the announcement the price has jumped from $2.40 up to $3.30 which is a nice pick up for the share holders.

Over the past twelve months the performance of the company has let down share holders with the price being in the $5 range a year ago before dropping to $2.40.

The above news is positive for the company and at the current price it is paying a 6.5% yield. 

It is a competitive industry with small barriers to entry as such I expect to see WTF continue to grow through acquisition.

For more information about Wotif.com Holdings Limited (WTF)  please contact us on 07 4771 4577.