There was never a question that Flight Centre was really gonna be the key factor in driving the growth of BYO into the big leagues so I understand and agree with the strategy of accelerating the deal and integrating BYO into FLT to maximise growth, revenues and hence shareholder returns when the final payment is made based on EBITDA for FY 18.
However, I am a bit uncertain as to the merits of giving up half the equity owned by DVI (16.4% down to 8.2%) on the basis that "FLT is likely to invest additional capital into PPS..."Surely they would have sought contractual obligation to invest an amount at least equal to the value of equity ceded by DVI to FLT??
And also, even tho the halving of equity is reflected in the 8.2% for calculating final payment based on EBITDA in the equation of future payment,the equity is considered as the full 16.41% for subtracting PPS financial debt from future payment?
[BCOLOR=rgb(100.000000%, 100.000000%, 100.000000%)]"Future Payment = 6 x 8.205% x PPS’s FY18 EBITDA – (16.41% x PPS’s financial debt) – Initial Payment[/BCOLOR]"
