Media Release
S8 Ltd, Harvey World Travel Group Ltd, Changed Webjet Board Composition
5th October 2005
Webjet notes with interest the S8 release refuting alleged speculation in relation to takeover intentions.
Commenting, Webjet Managing Director, David Clarke said: "we are not aware of any speculation in relation to S8 other than press commentary attributed to the S8 Chairman covering the Harvey World Travel growth options in Webjet Limited. There has been no dialogue whatsoever between Webjet and S8 on any of these matters. The market is reminded that the Harvey World Travel growth options are not transferable and in the event they are exercised, the funds flow through to Webjet. On current issued capital, and in the absence of any other equity issue by Webjet, if the growth options were received in full, the Harvey World Travel holding in Webjet would increase to approximately 33% (from currently approximately 19.8%) and result in over $20 million funds being paid into Webjet Limited.
The Harvey World Travel shareholding at that point, whilst significant, would not deliver control of Webjet Limited to Harvey World Travel or S8 and the market is reminded of the recent substantial shareholding acquired by the Thorney Investment Group, and of the nature of material shareholdings in Webjet by its Directors.
We also advise that Mr Norm Fricker, previously Chairman of Harvey World Travel and a Director of Webjet Limited has resigned from the Webjet board and on behalf of our Chairman and Board we convey particular thanks for his contribution to Webjet and wish him every success in his future activities.
It should be noted that the Harvey World Travel group has no further automatic rights to Webjet board nomination and we are pleased to note that Tim Dodds (Harvey World Travel Finance Director) continues on our board which now totals six, (reduced from seven).
Webjet's leading position in its market segment and continued significant growth, and strong cash flow, places it in a position where the full strategic value of the company may be realised in a number of directions and the potential should be viewed against a global backdrop which is not necessarily defined or limited to an Australian travel group or a Queensland based property group. The world of internet travel is comprised of massively powerful global players and it is pertinent to note that in Australia Webjet has become the leading operator.
Whilst both S8 and Harvey World Travel may well represent interesting trading opportunities which we are keen to explore in due course, our underlying business strategy is delivering on its promise and we consider the global so called 2nd inflection point of the internet is coinciding with our growth which, if continued, means we have many avenues to explore in the future.
Webjet market capitalisation is in excess of $100 million*, and we do not intend to be diverted from maximising our trading results and maintaining optimum concentration on our business plan which does not currently require further capital for its execution.