The mystery over takeover speculation about Webjet Group (ASX: WJL) has ended with the online travel agency announcing it has received a bid from private equity firm BGH Capital.
Webjet said BGH’s unsolicited, non-binding indication of interest in acquiring a controlling interest in the company valued it at 80 cents per share and was subject to assumptions about debt, dividends, distributions and business acquisitions.
The offer values the target company at A$315 million.
BGH has disclosed a 10.76% stake in its target consisting of 5.89% held by BGH and 4.87% held by Portfolio Services Pty Ltd, an entity associated with investment company Ariadne Australia and its Chair Gary Weiss.
BGH indicated it was open to some shareholders retaining an ongoing equity interest in Webjet with the potential for ongoing access to liquidity by retaining the company’s public listing.
Webjet said shareholders did not need to take any action. The Board was assessing and making no recommendation about the BGH Proposal and would update shareholders as appropriate.
The Board has appointed UBS Securities as financial adviser and MinterEllison as legal adviser.
The catalyst for the bid talk was a spike in Webjet's share price which surged from 64 cents to 82 cents on 12 May.
Webjet was demerged from its former parent company in 2021 with its MyFizzy technology arm created as a separate company in an effort to unlock value for shareholders.
Webjet shares closed three cents higher on Tuesday at 89 cents, valuing it at A$349.5 million (US$227.1 million).
