Sell, Gullivers directors to tell shareholders

Gullivers Travel Group's independent directors will tell shareholders to accept a takeover bid from Queensland's S8 after a top-end valuation.

Chairman Jeff Todd said an independent assessment placed the bid at the top end of the valuation range.

However, Todd did not release the independent report or the target company statement, but said they would be "sent to shareholders within the next few days".

ASX-listed S8 has offered $2.35 in cash for each Gullivers share. That is a 40 per cent premium to the closing price of $1.67 on May 26 - the day before S8 said it was planning to take over NZX-listed Gullivers.

Shares closed up 2c yesterday at $2.38.

A special dividend of 5c a share will be paid by Gullivers should S8 reach a minimum acquisition target of 50 per cent and the offer goes unconditional.

S8 now holds 29.87 per cent of the company.

Gullivers managing director Andrew Bagnall - who founded the business in 1976 - has already agreed to sell his 26.82 per cent holding. He will be offered a seat on the S8 board if the takeover succeeds.

S8 is also offering 80c a share for each Gullivers option, which an independent report by Deloitte called "fair and reasonable".