MELBOURNE – Helloworld Travel Ltd (ASX:HLO) said on Wednesday it has submitted a non-binding indicative proposal to acquire Webjet Group Ltd (ASX:WJL) for A$0.90 per share in cash, valuing the online travel agency at a significant premium to its recent trading levels.
The offer represents a 31% premium to Webjet’s undisturbed closing price of A$0.685 on May 7, a 54% premium to its one-month VWAP of A$0.58, and a 19% premium to Webjet’s last close of A$0.755 on Nov 18.
Helloworld said the proposal, to be implemented via a scheme of arrangement, is subject to confirmatory due diligence, a scheme implementation agreement, and unanimous board support from Webjet in the absence of a superior offer.
Chief Executive Andrew Burnes described the deal as a “compelling value proposition” for Webjet shareholders, adding that a combination of the two companies would create a stronger platform in the travel bookings industry.
Helloworld, which operates retail and business travel networks across Australia, New Zealand, Fiji and Greece, employs more than 900 staff and has over 2,600 agency and broker members.
Helloworld Travel Limited (ASX: HLO) is a leading Australian & New Zealand travel distribution company, comprising retail leisure travel and business travel networks, travel broker networks, destination management services (inbound), air ticket consolidation, tourism transport operations, wholesale travel services, including event packaging and online operations, all supported by world class proprietary and non-proprietary distribution systems.
HLO businesses have over 900 personnel located in Australia, New Zealand, Fiji and Greece, and over 2,600 members of its travel agency and broker networks in Australia and New Zealand
Helloworld Travel is a proud sponsor of the School of St Jude in Tanzania, Ollie’s Echo, The Danii Foundation, and My Room Children’s Cancer Charity.