Flight Centre Limited (FLT) today responded to criticisms levelled against Ernst & Young Transaction Advisory Services (EY), following the FLT major shareholders’ decision to withdraw support for a proposed joint venture between FLT and PEP.
EY was commissioned by FLT’s independent directors to produce an Independent Expert’s Report, which was intended to be released in conjunction with a full Explanatory Memorandum outlining the transaction for shareholders.
As this Explanatory Memorandum was not released, the report was instead prepared on a basis consistent with an independent expert’s report and issued as an Evaluation Report.
A draft of the evaluation report was confirmed by FLT for factual accuracy prior to its release.
The expert was given unfettered access to all parties involved in the transaction, including PEP and its advisers. FLT does not believe that the integrity or independence of the EY report was compromised.