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News 8/11/2006   

Decent proposal

 
Flight Centre is offering minority shareholders $17.20 a share – a generous recommendation that is likely to be approved by the market.

The proposal has come from a private equity consortium comprising Private Equity Partners (PEP) and Flight Centre’s founders - Graham Turner, Geoff Harris, Bill James, Jim Goldburg and Chris Grieve - who now hold 57 per cent of the company.

Under the recommendation, the founders will receive $14.00 per share and will exchange the remainder of their shares in the company for shares in the bid company.

Once a formal merger implementation is agreed, shareholders will receive a full description of the proposal, a recommendation from each of the directors and a report from independent expert Ernst & Young.

Shareholders will be allowed to vote on the proposal at an Extraordinary General Meeting, with the proposal expected to be completed within three months, or the first quarter of next year.

Shareholders must vote on the proposal in a scheme of arrangement that needs support from 75 per cent of those voting.

At the time of going to press the company’s share price stood at $16.77, up from $13.65 on October 24, a day before the announcement.

8 November 2006


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