Helloworld Travel Limited has submitted a non-binding indicative proposal to the board of Webjet Group Limited to acquire all of the issued shares in Webjet that it does not already own by way of a scheme of arrangement.
Helloworld’s proposal to acquire all Webjet’s shares for a cash consideration of A$0.90 per share represents a compelling value proposition for Webjet’s shareholders.
The proposal price represents a highly attractive premium to Webjet shareholders, being:
- 31 percent to Webjet’s undisturbed closing share price of A$0.685 per share on 7th May;
- 54 percent to Webjet’s undisturbed one-month VWAP of A$0.58 per share to 7th May; and
- 19 percent to Webjet’s last close share price of A$0.755 per share as of Wednesday ,18th November.
According to Helloworld chief executive and managing director Andrew Burnes AO: “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.”
Burnes added that his company is committed to working collaboratively with Webjet’s Board and management team to expedite the transaction with as little disruption as possible.
A compelling offer
Helloworld believes the proposal represents a compelling offer for all Webjet’s shareholders, with the opportunity to realise a premium valuation and 100 percent cash consideration.
Furthermore, the parties believe that Helloworld and Webjet are logical partners and that a combination provides a strong platform for both companies to achieve their long-term strategic objectives.
Helloworld’s proposal is subject to certain conditions including completion of confirmatory due diligence to their satisfaction; entry into a scheme implementation agreement on acceptable terms including a no material adverse change condition and other customary closing conditions; and a unanimous recommendation from the Webjet Board that its shareholders vote in favour of the proposal in the absence of a superior offer.
