Takeover bid launched for Gullivers Travel

Queensland-based property management company S8 Ltd is set to acquire Gullivers Travel Group Ltd, New Zealand's biggest travel company, for about $235 million, news agency AAP has reported.

Gullivers shareholders are being offered $2.35 cash for each Gulliver share under the proposed merger, which has the backing of the company's managing director Andrew Bagnall, according to AAP.

S8, a Queensland-based owner of several three-star to five-star resorts on the Gold Coast and Sunshine Coast, said the deal represented a 40 percent premium on the closing price of $1.67 of Gullivers shares on Friday.

The offer, which is subject to a 50 percent minimum acceptance requirement and regulatory approval, will be funded through existing cash reserves and debt, S8 told AAP.

S8 said details of the offer, as well as Gullivers' target statement, would be sent to shareholders as soon as possible.

Shares in Gullivers Travel opened on the New Zealand sharemarket today up 68c at $2.35