In connection with the merger, each ordinary share of Yatra Online will be entitled to receive 0.005 shares of a new class of preferred stock of Ebix (Ebix Convertible Preferred Stock). Each share of Ebix Convertible Preferred Stock received for each Yatra ordinary share will, in turn, be convertible into 20 shares of common stock of Ebix.
Based on the trailing 15-day volume weighted average price (VWAP) of Ebix common stock of $49.05 per share, each Yatra ordinary share convertible into Ebix common stock would be valued, on an as-converted basis, at $4.90 per share, representing an approximately 32 per cent premium to Yatra's closing share price as on March 8, 2019, the last trading day prior to the public announcement of Ebix's offer to acquire Yatra.
Assuming a value of $4.90 per Yatra ordinary share, the transaction implies an enterprise value of $337.8 million at the Ebix collar price of $59 per share and post adjustment for indebtedness, working capital, warrants to be converted and minimum cash requirement, a net equity value of $239 million.
Ebix will be issuing 243,747 convertible preferred stocks, which in turn will be convertible into 4,874,931 shares of Ebix common stock.
Following the completion of the deal, Yatra will become part of Ebix's EbixCash travel portfolio alongside Via and Mercury and will continue to serve customers under the Yatra brand.
Yatra Online Inc is the parent company of Yatra Online Private Limited which is based in Gurugram. It is one of India's leading corporate travel services provider with over 800 corporate customers. It is also one of India's leading online travel companies which operates the website Yatra.com.
Ebix is a leading international supplier of on-demand software and e-commerce services to the insurance, financial, healthcare and e-learning industries.
Commenting on the deal, Ebix Chairman, President and CEO Robin Raina said: "The acquisition of Yatra would lend itself to significant synergies and the emergence of EbixCash as India's largest and most profitable travel services company, besides being the largest enterprise financial exchange in the country."
"We are pleased to announce this agreement with Ebix, which provides our shareholders with the opportunity to participate in the significant upside potential of one of the fastest growing multinational on-demand software and e-commerce services companies in the world," said Dhruv Shringi, co-founder and CEO of Yatra Online.
( With inputs from IANS )