Australia's Webjet crashes after ending buyout talks with BGH Capital, Helloworld (updated)

Web Travel

13/02/2026 24:04

Recasts paragraph 1, adds share moves in 2, further details throughout, analyst comment in 9

By Nikita Maria Jino and Kumar Tanishk

Feb 13 (Reuters) - Australia's Webjet Group WJL.AX said on Friday it had ended takeover talks with BGH Capital and Helloworld Travel HLO.AX after the two suitors failed to table firm proposals that could be put to shareholders.

Shares of the online travel agency fell as much as 24.8% to 59.8 Australian cents by 2315 GMT and were on track for their weakest trading session since the firm's spinoff in September 2024 from parent Webjet Ltd, now called Web Travel WEB.AX.

Webjet shares also came under pressure after the company trimmed its fiscal 2026 forecast for underlying operating earnings to A$28 million-A$29 million ($19.84 million-$20.54 million) from A$30 million-A$32 million, citing challenging trading conditions.

The end of talks brings close to a contest between private equity firm BGH Capital and travel distributor Helloworld to acquire Webjet. BGH Capital's offer valued the company at A$357 million, while that of Helloworld valued it at A$353 million.

Webjet shares closed at 77.5 cents on Thursday, valuing the firm at around A$304 million.

"The Webjet board does not believe there is sufficient certainty that a binding proposal that is capable of being recommended by the board will be received from either party within an acceptable time frame," the company said in a statement.

"The Webjet Board remains open to engaging on any future change of control proposal that represents compelling value for shareholders."

BGH Capital first made an 80-cent offer in May for the shares in Webjet it did not already own, before raising it to 91 cents in November. Helloworld entered the fray in November with a 90-cent proposal.

"The non-binding bids... suggest suitors see more constrained medium-term earnings power than the market, with BGH Capital potentially open to revisiting an offer, but private equity remains in a highly selective environment," said Marc Jocum, senior product and investment strategist at Global X ETFs, which holds a minority stake in Webjet.

($1 = 1.4116 Australian dollars)

 (Reporting by Nikita Maria Jino and Kumar Tanishk in Bengaluru; Editing by Alan Barona and Subhranshu Sahu)

 ((Nikita.Jino@thomsonreuters.com;))