Webjet is attracting significant takeover interest after receiving a revised non-binding offer from BGH Capital. According to RBC Capital Markets analyst Wei-Weng Chen, the offer is 91¢ per share in cash, slightly higher than the competing bid of 90¢ from Helloworld. Webjet is an online travel agency that operates both a business-to-consumer and business-to-business model. The company provides booking services for flights, accommodation, car hire, and travel insurance.
Chen noted that the Webjet board has granted both bidders access to due diligence, a move that may signal the company could attract even more interest. He added that Webjet’s robust market position, strong brand recognition, substantial cash generation, and healthy cash balance make it an appealing target for trade and financial buyers alike.
The RBC analyst suggested that the possibility of another bidder entering the process should not be ruled out, emphasising the potential for a competitive situation to emerge. Similar to the Helloworld offer, BGH’s proposal will not be reduced by Webjet’s 2¢ interim dividend. Both bids are contingent on a mutually agreed non-disclosure agreement before due diligence can proceed.
RBC maintains an “outperform” rating on Webjet, supported by a price target of $1.10. This reflects the firm’s positive sentiment surrounding the current takeover developments and the potential for increased shareholder value.
