Jetset Stella, confirm merger

A trading halt will be lifted on Jetset shares today, although it could be two months before information is made available on the financial performance of Stella.

The only details available yesterday were the $40 million of debt Jetset will inherit from Stella, and the $220 million in shares it will hand over for Stella's business.

The valuation is based on the 219.5 million shares being issued to Stella shareholders. Jetset shares last traded at $1.

Jetset chairman Tom Dery said it would take six to eight weeks for a explanatory memorandum, including Stella's financial details and independent expert's report, to be made available to investors.

Jetset reported a $7.3 million profit before tax for the half-year ending December 31.

A shareholders meeting to approve the deal will be held in August.

The deal also requires the approval of the competition regulator and the Foreign Investment Review Board.

If approved, Qantas will remain Jetset's largest shareholder but with its stake diluted from 58 per cent to 29 per cent. Major shareholder Spiros Alysandratos's stake will be halved to 12.6 per cent.

Stella's majority owner, private equity group CVC, will have a 26.9 per cent stake and UBS 17.9 per cent.