Timothy J. Maguire Issues Open Letter to Yatra Online
July 27, 2021 at 09:01 am EDT
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On July 27, 2021, Timothy J. Maguire announced that it has issued an open letter to Yatra Online, Inc.’s shareholders reiterating their belief that the Company is well positioned to benefit from the post-COVID travel recovery and detailing certain revenue and margin growth opportunities apparently overlooked by the Company’s management and Board of Directors that could drive the stock to $6.00 per Share on $100 million in sales in 2022, assuming a conservative a 3x price to sales multiple. Further, in the letter it is also expressed that Timothy J. Maguires’ serious concerns with the disappointing shareholder returns of the Company to date, which they attributed to a number of reasons including: (i) the need for an overhaul of the Company’s extremely shareholder-unfriendly corporate governance profile and a lack of transparency in its executive compensation packages, (ii) its subpar operational performance to date, (iii) questionable decision-making behind the failed merger with Ebix, Inc., and lastly, (iv) a lack of operational and industry experience among members of the Board and management, which may be a contributing factor to each of the aforementioned issues.
Yatra Online, Inc. is an online travel company. The Company provides travel services to corporate and consumers. It allows leisure and business travelers to explore, research, compare prices and book a range of services catering to their travel needs through its Website and mobile applications, and other associated platforms. It operates through three segments: Air Ticketing, Hotels and Packages, and Other Services. Its services include domestic and international air ticketing on Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings and ancillary services within India. The Company also provides access through its platform to hotels, homestays, and other accommodations. Its applications include Yatra, Yatra Web Check-In, Yatra Corporate, and Travelguru HomeStay. Its other services consist of rail tickets, bus tickets, taxi rentals and ancillary value-added services, such as travel insurance, visa processing and tickets for activities and attractions.