New Delhi, July 17 (IANS) US software firm Ebix said on Wednesday that it has acquired online travel portal Yatra Online Inc via merger in an all stock deal for a net equity value of $239 million.
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.
New Delhi, Aug 18 (IANS) India's largest lender, the State Bank of India, on Sunday said that it is extending the repayment period for stressed automobile dealers by 15-30 days to help them out of current inventory builds-ups due to the slowdown in the sector and in economy.
"Normally, the repayment period is 60 days. So we extend it for 75 days for some dealers and to 90 days for a few others. We are talking to each dealer. We also had meetings with the Federation of Auto Dealers. We are actively engaged with all of them.
"On a case to case basis, whichever dealer has faced any problem on account of excess inventories, we have been working out solutions for all of them," SBI's Managing Director, Retail & Digital Banking, P.K. Gupta said.
He also said the current slowdown would not create NPAs.
The auto sector is the worst-hit sector in the current slowdown and apart from huge inventory build-up, the companies are resorting to production shutdowns to cope up with poor sales.
"SBI is looking at extending the credit period for those auto dealers faced with inventory build-up due to poor demand. Our main focus is making available funds at cheaper cost for those retail customers keen on buying cars. We also fund the dealers when they buy the cars from the manufacturer. However, for the aspect of revival of demand, only the government can step in," Gupta said.
The bank has an exposure of Rs 11,500 crore to auto dealers.
Gupta said that at the moment, some automobile dealers are facing difficulty in repaying existing loans as per schedule. He was, however, hopeful that the festive season will boost auto sales.
"Our discussions with dealers' associations suggest that the festive season is going to start soon and then they will be able to clear most of the inventory and most of the accounts may not turn into NPAs. But it will all depend on what kind of demand revival takes place," he said.
The SBI on Sunday said in a statement that it conducted sessions with officials starting from the branch level to chalk out a roadmap for reviving credit. The rush for conducting these meetings is a result of a push from the Central government asking banks to come up with suggestions on the future of the industry.
It said the bank is trying ensure availability of credit to car buyers, and low interest rates and the current slowdown in the country's auto sector may not create non-performing assets for the banking sector.
"I think it will be difficult to say at this point of time (whether there will be NPAs in the auto sector). We have seen some cases of dealers having an excess inventory, and we have been working out solutions for them," Gupta said.
Auto sales in July this year fell to a 20-year low, and at the current monthly average sales, total projected annual sales of passenger vehicles for 2019-20 may drop to yearly sales levels seen in 2014-15 and 2015-16.