Of course, the splitting of Webjet (ASX:WEB) into two companies is going to be a good thing – you don’t have to read the 214-page explanatory document to know that.
Why else would Webjet release the independent expert’s report with its recommendation to back the split, along with a notice of meeting for shareholders to decide in a vote in Melbourne on September 17?
The split was only announced in May, so the company and its advisors have been working hard, but you get a more than big hint that the spin-off idea had been around for a while.
The deal will see the demerger of Webjet Group Limited (Webjet B2C) from Webjet Limited, by way of an in-specie dividend and capital reduction (Demerger Resolution).
If approved, shareholders will be entitled to receive one Webjet B2C share for every Webjet Limited share held at the Demerger Record Date at 7pm on September 24. Shareholders will also retain their existing Webjet Limited shares.
If the demerger proceeds, and subject to shareholder approval, Webjet Limited will also be renamed to WEB Travel Group Limited.
Webjet said its Board “unanimously recommends that Webjet Limited shareholders vote in favour of the Demerger Resolution to be considered at the EGM. Each Webjet Limited Director who holds or controls Webjet Limited shares intends to vote in favour of the Demerger Resolution.”
KPMG Financial Advisory Services, the Independent Expert appointed by Webjet to review the proposed demerger, has concluded that the demerger is in the best interests of shareholders.