Australia's Webjet rallies on BGH Capital interest (updated)

Ariadne Australia

14/05/2025 04:30

Updates with background and comments from RBC Capital Markets

May 14 (Reuters) - Shares in Australian online travel agency Webjet WJL.AX surged to a five-month high on Wednesday after the company said shareholder BGH Capital was interested in acquiring a controlling stake.

However, the shares gave up some gains as the bid is at discount of around 10% to the last closing price.

Webjet, after market close on Tuesday, said it had received an indication of interest from Melbourne-based buyout firm BGH Capital to take the controlling stake at A$0.80 apiece, valuing the company at A$314 million ($203.3 million).

Shares of Webjet rose as much as 3.4% to their highest since December 9 and were trading 1.7% higher at A$0.91 as of 0320 GMT.

Analysts at RBC Capital Markets said that the discounted offer price suggests that it closing the deal would require a higher price.

Shareholders might only consider offers starting from A$1.26 to A$1.50 per share, assuming a control premium of 20%-30% on the current offer, the brokerage said.

BGH Capital and investment firm Ariadne ARA.AX collectively hold more than a 10% stake in Webjet, with the private equity firm owning 5.89%.

($1 = 1.5449 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))