Webjet Group (ASX: WJL) is a leading global online travel company offering flight bookings, hotel reservations, and travel packages through both consumer-facing and business-to-business platforms. Its major brands include Webjet.com.au and WebBeds, which serve retail customers and global wholesale accommodation markets respectively.
Unsolicited Offer Emerges from BGH Capital Consortium
Webjet Limited confirmed that it had received an unsolicited, non-binding takeover offer from private equity firm BGH Capital. The offer proposes acquiring Webjet shares at $0.80 per share a 40.4% premium to the company’s price as of 24 April 2025. The bid is conditional on several factors including that Webjet does not undertake acquisitions, distribute dividends, or engage in share buybacks prior to the completion of any deal. BGH is also seeking specific cash reserve levels and that Webjet remains debt-free throughout the due diligence process.
The offer follows a strategic accumulation of shares by the BGH consortium. Together with associates including corporate figure Gary Weiss and Ariadne Australia, the group has disclosed a 10.76% stake in Webjet. This includes 5.89% held directly by BGH and 4.87% held through Portfolio Services Pty Ltd, affiliated with Ariadne and Weiss. While the group has entered into a six-month standstill agreement restricting joint bids with third parties, BGH may still acquire additional shares on its own during this period.
Webjet’s Strategic Plans in Focus
The takeover interest arrives at a pivotal moment for Webjet, which is during executing a long-term growth strategy. In September 2024, the company completed the demerger of its consumer travel business, resulting in the formation of Webjet Group Limited. Post-demerger, the firm outlined a strategy aimed at doubling its Total Transaction Value (TTV) by FY2030. Key pillars of this strategy include the expansion of hotel and holiday package products, the launch of a dedicated business travel service, and enhanced customer engagement through its loyalty platform.
Webjet is also focused on deploying digital solutions to increase efficiency and scale. Its B2B division, WebBeds, remains a core revenue driver, with the company seeking to reinforce its position in global wholesale accommodation. The overarching goal is to transition from a transaction-focused model to a more vertically integrated travel services platform.
Market Headwinds and Valuation Pressures
Despite these growth ambitions, Webjet has faced headwinds in recent months. The company’s share price has fallen by nearly 8% year-to-date, weighed down by investor caution following the demerger and concerns over profit guidance. Rising interest rates and cost-of-living pressures have further subdued travel-related equities. Additionally, the company’s recent exclusion from the S&P/ASX 300 index has negatively impacted passive investment inflows and broader market visibility.
Nevertheless, Webjet remains profitable and cash generative. In its most recent earnings update, the company reported positive momentum in booking volumes across both B2B and B2C channels, underpinned by a recovery in international travel and solid performance in Europe and Asia. Management continues to highlight operational discipline and capital-light scalability as key differentiators in a competitive travel sector.
Board Response and Shareholder Guidance
In response to the takeover approach, Webjet’s board has appointed UBS as its financial advisor and Minter Ellison as legal counsel. The directors are currently assessing the proposal and have urged shareholders not to take any action while this review is underway. The company reiterated that the offer is non-binding, indicative, and subject to due diligence, and there is no certainty it will proceed to a formal bid.
The board’s decision will hinge on whether the offer reflects Webjet’s long-term value, especially considering its forward growth trajectory. The company’s capital structure, asset-light operating model, and global digital footprint are likely to be key considerations in evaluating any takeover terms.
Outlook
Webjet’s position at the intersection of digital travel and global logistics makes it an appealing target for private equity, especially given the relatively low valuation following recent market softness. The unsolicited offer from BGH Capital underscores broader industry interest in consolidating travel services under scalable, technology-led platforms. While it remains uncertain whether the current bid will evolve into a formal takeover, the situation has put Webjet in the spotlight. Going forward, the company’s ability to demonstrate strategic execution, revenue growth, and market leadership will be essential in either validating its standalone vision or commanding a premium in any acquisition scenario.
