March 14, 2019 | Bureau | Outbound India
US-based IT firm Ebix has recently proposed the acquisition of the online travel portal Yatra in an undeclared amount, media reports suggest. The Times of India has reported that the company is willing to shell out a significant premium over its market price. According to the ToI report, Ebix has offered a price of about $7 a share for the Nasdaq-listed company which is 84% higher than the closing price of Yatra Online Inc on Friday. Following this offer, the share price of Yatra Online Inc, the holding company of online travel portal Yarta.com rallied as much as 34% to $5.09.
Ebix’s $7 per share offer values Yatra Online Inc at $340-million compared to its Monday’s peak market cap of $212 million. Ebix has given one-week time to Yatra to respond to its offer, the daily mentioned.
Ebix, in its filing, has said that it can withdraw the offer if the Yatra board doesn’t revert with a positive response. Provided Yatra agrees to the offer, it could take another 30-60 days to complete the transaction. It would need regulatory approvals too, the publication mentioned.
Yatra said it is consulting with its advisers, investment bank Citigroup and law firm Goodwin Proctor, to take the best course of action. “Company shareholders do not need to take any action at this time,” Yatra said in a statement.
Ebix CEO Robin Raina reportedly told ToI that the acquisition offer being made was “compelling” and would complement Ebix’s existing travel business.