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US-based Ebix offers to acquire Yatra Online Inc for $ 336 million

The company has sent a letter to the Board of Yatra Online, Inc outlining offer to acquire 100 per cent of the outstanding stock of Yatra Online for $ 7 per share on a debt-free basis, says Ebix

Press Trust of India  |  New Delhi 

yatra.com
yatra.com

US-based software firm Monday said it has offered to acquire Online Inc, the parent company of firm com, for $ 336 million (over Rs 2,345 crore).

The company has sent a letter to the Board of Online, Inc outlining offer to acquire 100 per cent of the outstanding stock of Yatra Online for $ 7 per share on a debt-free basis, said in a statement.

Gurugram-based is a major player in the sector and provides services including domestic and international air ticketing, hotel bookings, homestays, holiday packages, bus ticketing, rail ticketing, activities and ancillary services.

Ebix intends to merge Yatra Online in the company's Indian EbixCash subsidiary set up, it added.

"The Ebix offer, based on approximately 48 million Yatra Online diluted shares outstanding, represents a 84 per cent premium to Yatra Online's closing share price of $ 3.80 as of March 8, 2019," the statement said.

The offer contemplates the assumption of all Yatra Online receivables, cash and restricted cash worth at least $ 25 million at the time of closing and other assets, with all liabilities being paid for by Yatra Online concurrent to the closing of the transaction, it added.

The company will pay for Yatra Online at its discretion either in cash or by issuing freely tradeable Ebix stock, the statement said.

"In case Ebix decides to pay for the acquisition in Ebix stock, then the Ebix stock will carry a minimum collar value of $ 59 per Ebix share, calculated by dividing the total acquisition price payable to Yatra shareholders by the 10-day average price of the Ebix stock, preceding the closing date," it added.

Ebix also said that it reserves the right to reduce its offer at its discretion if it does not receive a positive engagement response from the Yatra Online Board in a timely manner or if any subsequent steps are taken by the company that could have an adverse impact on its future value, the statement said.

Ebix also said it reserves the right to withdraw this offer, if the Yatra Board of Directors declines to allow Ebix to proceed with due diligence by 5 pm EST on March 18, 2019, it added.

Highlighting the rationale for the transaction Ebix said it believes that Yatra Online can generate revenues upwards of $ 150 million per year with over 30 per cent operating margins on a post-closing basis, within six months of the acquisition by Ebix, the statement said.

Ebix said it expects that the combination of the two can generate between 25 to 30 cents accretion for the shareholders of the combined Ebix company, it added.

Comments from Yatra could not be obtained at the time of filing the stotry.

First Published: Mon, March 11 2019. 21:05 IST
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