Helloworld Travel Limited (ASX: HLO) has put a cash offer of A$0.90 per share on the table to buy out Webjet Group Ltd (ASX:WJL), moving to acquire all the Webjet shares it doesn’t already own via a scheme of arrangement.
The market has reacted well to the news, with Helloworld shares up 2% and Webjet up over 17% in morning trade.
The proposal is non-binding and indicative at this stage, but Helloworld is pitching it as a straightforward cash exit at a solid premium to Webjet’s recent trading levels.
Premium on the table
The A$0.90 per share offer represents:
- 31% above Webjet’s undisturbed closing price of A$0.685 on 7 May.
- 54% above its undisturbed 1-month VWAP of A$0.58.
- 19% above Webjet’s last closing price of A$0.755 on 18 November.
Helloworld describes the offer as “compelling value” for Webjet shareholders, giving them the option to cash out at an elevated price in one step.
The A$0.90 won’t be reduced for any dividend declared with Webjet’s 1H FY26 results, but any dividends or capital returns announced after that would lower the offer on a dollar-for-dollar basis.
Why Helloworld wants the deal
Helloworld says Webjet is a natural fit and that combining the two businesses would create a stronger, more competitive travel-bookings group with the scale to pursue long-term growth.
CEO and managing director Andrew Burnes AO said the proposal offers strong value for Webjet shareholders and would create “a powerful business proposition” in the travel industry.
“Our proposal represents compelling value for Webjet shareholders. A combination of Webjet and Helloworld would create a powerful business proposition in the dynamic travel bookings
industry.
“We are committed to working collaboratively with Webjet’s Board and management team to progress this transaction expeditiously and with minimum disruption to the company.”
What needs to happen next
The offer still has a few steps to clear:
- Helloworld needs to complete confirmatory due diligence.
- Both parties would then need to work out a scheme implementation agreement, including customary conditions.
- Webjet’s board would need to unanimously recommend the proposal to shareholders, assuming no better offer turns up.
Helloworld has set a clear marker: A$0.90 a share, all cash, with a healthy premium if Webjet decides to take the proposal further.