European OTA eDreams ODIGEO has rebuffed an unsolicited takeover bid and confirmed plans to continue as an independent business.
Today’s disclosure came as the Barcelona-based company concluded a review of strategic options triggered by the approach by unnamed potential investors last November.
The company stressed that it was mid-way through a transformation of its business model anchored by two key initiatives – revenue diversification and change of price display.
“Potential investors have assigned a risk profile to the transformation that does not match the view of the board, which is fully confident in the company’s ability to execute the business plan,” the firm said.
“As a result, the board has determined unanimously that eDreams ODIGEO is best placed to maximise value creation for all stakeholders through continuing to execute on its business plan with Permira and Ardian as strong supporters of the company’s strategy and performance.”
Chairman Philip Wolf said: “The board has agreed that eDreams ODIGEO is best placed to capitalise on the renewed strategic focus, operational success and strengthened financial position.
“The board is confident that the management team will continue to successfully deliver on the strategy, driving sustainable growth and maximising value for stakeholders.”
Chief executive Dana Dunne added: “eDreams ODIGEO has continued to benefit from the strategic shift in our business model and is making good progress against our KPIs.
“We remain fully on track to meet our raised full year guidance for fiscal year 2018 as well as for fiscal year 2020.”
The company raised its guidance in November to a target of adjusted earnings [EBITDA] of €116-€120 million for the current financial year and €130-€145 million in 2020.
“The increased guidance results from operational execution and leveraging scale, and more favourable terms in a number of contracts with the company’s suppliers, and it is based on the continuity of its current strategies on product transparency and revenue diversification,” the company said.
“Over the past three years the new management has continually exceeded its guidance to the market, with strong execution of its plans.”