Bain Capital Swoops On Distressed Webjet

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.

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.

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