Ann: Flight Centre Invests In BYOjet Group, page-19

I'm disappointed with this development.

I bought into DVI because I found BYOJet online, used it, and thought it excellent. I tracked down who owned it - DVI - and bought in.

I thought 'here's a tiny company (market cap around $8 MILLION at the time), with a great product, and perhaps it can pinch a bit of Flight Centre's (market cap $4 BILLION) market share'.

Now it's sold out to Flight Centre, 100% probably, by 2018.

That would have been fine with me, but only if the price was good.

However, the price DVI will receive will depend on BYOJet's EBITDA FY16 and FY18.

Flight Centre will have some incentive to keep EBITDA FY16 and FY18 low, to minimise the price it has to pay for BYOJet.

Maybe the incentive for Flight Centre to grow the business prior to acquisition will outweigh its incentive to keep the price low, but there's no disputing Flight Centre will have mixed incentives.

In the meantime, the share price will tell the story. So far the story isn't great.