Webjet Faces Uncertain Future as BGH Capital Seeks Control
BGH Capital has made an unsolicited, non-binding proposal to acquire a controlling interest in Webjet Group at $0.80 per share, signaling potential shifts in ownership for the travel services company.
- BGH Capital proposes $0.80 per share cash offer for controlling interest
- BGH holds 10.76% relevant interest in Webjet shares
- Proposal is non-binding and subject to due diligence
- Webjet Board has made no recommendation yet
- Potential for some shareholders to retain equity and liquidity
Unsolicited Proposal Shakes Up Webjet
In a surprising development, Webjet Group Limited (ASX:WJL), a key player in the travel services sector, has received an unsolicited, non-binding indication of interest from private equity firm BGH Capital. The proposal outlines a cash offer of $0.80 per share aimed at acquiring a controlling stake in the company. This move comes amid a backdrop of strategic positioning by BGH, which already holds a significant 10.76% relevant interest in Webjet shares.
Details and Conditions of the Offer
BGH’s proposal is contingent on several assumptions, including maintaining current cash levels, absence of external debt, and no dividends or buy-backs prior to any transaction. While the exact structure of the deal remains under consideration, BGH has expressed openness to allowing some existing shareholders to retain an equity interest, potentially preserving Webjet’s public listing and liquidity options. This nuanced approach suggests BGH is considering a partnership model rather than a full buyout.
Board Response and Next Steps
The Webjet Board is currently evaluating the proposal but has not issued any recommendation to shareholders. To navigate this complex situation, the Board has engaged UBS Securities as financial adviser and MinterEllison for legal counsel. Shareholders have been advised that no immediate action is required, reflecting the early and uncertain stage of negotiations. The company’s response will be closely watched as it balances shareholder interests and strategic options.
Market Implications and Shareholder Dynamics
BGH’s substantial shareholding, combined with its public indication of interest, has already stirred market attention. The offer price of $0.80 per share provides a clear valuation benchmark, though the non-binding nature of the proposal leaves room for adjustments. The potential for some shareholders to remain invested while accessing liquidity could influence market sentiment and trading activity in the near term.
Looking Ahead
As due diligence progresses, the unfolding scenario will test Webjet’s strategic resilience and shareholder appetite for change. The outcome could reshape the company’s ownership structure and strategic direction, with implications for its positioning in the competitive travel services industry.
Bottom Line?
Webjet’s fate now hinges on the Board’s assessment and BGH’s next moves, with shareholder value and control dynamics in the spotlight.
Questions in the middle?
- Will BGH submit a binding offer following due diligence?
- How will Webjet’s Board and major shareholders respond to the proposal?
- Could the deal preserve Webjet’s public listing or lead to privatization?
