- U.S-based software firm proposed to buy Yatra Online for over 2,345 crore.
- Ebix claims to have reserved the right to reduce and decline the offer in case Yatra does not respond appropriately to their proposal.
- Financial statement of Yatra from 2015-2018.
Ebix Inc, a U.S based software firm claimed that it has made a proposal to acquire Yatra Online Inc for over INR 2,345 crore. The company sent a letter to the Board of Yatra Online, stating Ebix intend to acquire 100% of the outstanding stock of Yatra Online for INR 486 per share.
Yatra is an Indian online travel portal, it is a massive player in terms of online travel company. Apart from booking domestic and international air tickets, the company is also involved in hotel booking, rail and bus ticketing, holiday packages etc.
The statement from Ebix said, “The Ebix offer, based on approximately 48 million Yatra Online diluted shares outstanding, represents a 84 % premium to Yatra Online’s closing share price of USD 3.80 (INR 264.54) as of March 8, 2019.”
The offer is viewed as an assumption of all Yatra Online receivables including the hard cash and restricted cash of worth around at least INR 174.6 crore ($25 million) in the closing time and other assets, with all liabilities being paid for, by Yatra Online at the same time while closing of the transaction, company added.
We have summed up some of the financial statements of Yatra Online from the year 2015-2018, let’s have a look at Yatra’s financial performance throughout the years.
Ebix will pay Yatra Online on its own preference either by cash or issuing freely tradeable Ebix stock.
“In case Ebix decides to pay for the acquisition in Ebix stock, then the Ebix stock will carry a minimum collar value of USD 59 (INR 4110.80) 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,” Ebix added.
Ebix also mentioned that it has a right and independence to reduce the offer in case the company does not receive a timely and positive reply from the Yatra Online Board or if any subsequent steps are taken by Yatra Online which will cause harmful impact on its future value.
Ebix also added that the company (Ebix) also reserves the right to withdraw the offer, if the Board of Directors from Yatra Online refuses to engage Ebix to proceed with due diligence 5 pm Eastern Time (EST) on 18 March, 2019.
Ebix believes that Yatra Online can bring in revenues of over 1,044.71 crore per annum, with over 30% of operating margins on a post-closing basis, within 6 months of the acquisition by Ebix.
Ebix expects synergy of these two companies can generate 25-30 cents increment for the shareholders of the combined Ebix company.
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