The Webjet Group Ltd (ASX: WJL) share price is up 3% after the ASX travel share gave an update about the proposed takeover.
Webjet is a major online travel agent business.
Webjet takeover offer
On 13 May 2025, the company received an unsolicited, non-binding indication of interest to acquire a controlling interest in Webjet for $0.80 per Webjet share.
But, that offer is based on a number of key assumptions including cash levels, no external debt, no dividends or other distributions and no business acquisitions.
BGH said while the transaction structure remains under consideration, it said it is open to some existing shareholders retaining an ongoing equity interest in the company, with the potential to retain the public listing. BGH requested due diligence to assist it in formulating a binding offer.
BGH has a total relevant interest of 10.76%, with 5.89% held by BGH and 4.87% held by Portfolio Services Pty Ltd, an entity associated with Ariadne Australia Ltd and Gary Weiss.
The response
The Webjet board said it has carefully considered the BGH proposal, including obtaining advice from financial and legal advisers. It has also consulted with and considered feedback received from a number of shareholders.
Webjet’s board unanimously concluded that the BGH proposal “materially undervalues” Webjet and therefore “is not in the best interests of Webjet shareholders”. On top of that, the Webjet board believe the BGH offer involves “significant uncertainty for the company and its shareholders, including in relation to its structure and proposed conditions.”
For the above reasons, the Webjet board has not granted BGH access to due diligence and has rejected the BGH proposal.
The Webjet board said it’s committed to maximising value for all Webjet shareholders and will carefully consider any acquisition proposal that is consistent with that objective.
Final thoughts on the Webjet share price
Investors are certainly expecting a higher takeover offer, with the Webjet share price trading at $0.90. But, it has traded higher than that within the last six months. The offer price may need to be increased for shareholders to want to sell their shares to BGH.
After the rapid recovery of the Webjet share price following the April sell-off, it doesn’t seem as cheap now. Other ASX growth shares could be better choices.
