Shareholders have been left puzzled by a Webjet Group trade this week from a likely suitor searching for 5 per cent of the stock, but winding up with just 1.8 per cent.
The trade, executed by Macquarie Capital on Thursday night, saw a party – thought to be BGH Capital – secure shares at 80c each, which was the price that Webjet’s shares closed at on Thursday.
A term sheet sent to investors said that the offer of 80c a share was a 40.4 per cent premium to Webjet Group’s undisturbed share price on April 24 of 57c, and a 72 per cent premium to its low on April 7.
The acquirer was looking for about 19.6 million shares, and added that the buyer had a stake below 5 per cent.
Many assumed the buyer was looking to acquire a blocking stake in Webjet before a takeover bid.
With an acquisition of the $270m company seemly on the agenda of the buyer, shareholders looked to be unprepared to sell up to the group that already had under 5 per cent, as they were holding out for a higher price.
The stock has been out of favour for investors, with its market value slumping following its demerger last year of WebBeds and with rising interest rates crimping consumer travel.
The demerger was followed by a profit downgrade two months after the deal occurred, and shares are down 7.7 per cent this year.
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