Bain Capital Swoops On Distressed Webjet

By Glenn Dyer | More Articles by Glenn Dyer

Shares in embattled online travel retailer Webjet ended lower, but higher after resuming trading yesterday after an emergency fundraising.

The company said it raised $231 million at a price of $1.70 a share. The shares ended at $2.78, down from the last sale before the issue of $3.76, but well above the $1.70 issue price.

The close in fact was $1.08 above the $1.70 issue price for the fundraising from major shareholders who have generated a nice profit of well over 60% from the raising.

In doing so Webjet revealed it had picked up a new best friend from the issue in aggressive US private equity giant Bain Capital.

It took shares in the issue, subscribing for $25 million worth of shares and agreeing to a “potential economic commitment of up to an additional $65 million”.

That means there’s an extra $40 million available if Webjet needs the money, which it could well do in 2021 if the rebound from the current slump is low.

Coupled with a fully underwritten $115 million retail raising set to begin on April 8, Webjet said in now expects to raise approximately $346 million in fresh capital.

The entitlement Offer now fully underwritten and opens on Wednesday, April 8.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →