Helloworld Travel launches $353m takeover bid for Webjet amid shareholder unrest
The travel heavyweight’s $353m takeover bid for struggling Webjet comes as shareholders prepare to vote on a contentious board shake-up.
Helloworld Travel has launched a $353m takeover bid for rival Webjet which has allowed due diligence as it attempts to placate restless shareholders Gary Weiss and BGH Capital.
The group is offering 90c a share, with the bid triggering a 16.5 per cent price surge on the ASX on Wednesday, from 76c to 88c a share.
Helloworld already has a 17 per cent stake in Webjet, but wants to enhance its own bricks and mortar travel agencies with an established online presence.
Helloworld chief executive Andrew Burnes said the proposal represented compelling value for Webjet shareholders.
“A combination of Webjet and Helloworld would create a powerful business proposition in the dynamic travel bookings industry,” Mr Burnes said. “We are committed to working collaboratively with Webjet’s board and management team to progress this transaction expeditiously and with minimum disruption to the company.”
In response, the Webjet board has agreed to open its books for Helloworld with the takeover subject to satisfactory completion of due diligence, entry into a scheme of implementation deed and Webjet shareholder approval.
RBC Capital Markets analyst Wei-Weng Chen noted it was the second non-binding bid for Webjet in the space of six months, after Dr Weiss’s Ariadne and BGH offered 80c a share in May.
“Importantly this bid comes despite Webjet downgrading 2026 earnings expectations,” said Mr Chen. “While BGH/Ariadne’s proposal was rejected by the board, we expect Helloworld’s offer could result in a revisited offer.”
Dr Weiss declined to comment on the Helloworld pitch which comes ahead of an extraordinary general meeting of Webjet on Friday.
The meeting has been called to consider resolutions proposed by Ariadne with the support of BGH to have Daniel Weiss and Andrew Taylor appointed to the Webjet board.
Daniel Weiss is Ariadne’s chief investment officer and Mr Taylor, a former Qantas executive. Together Ariadne and BGH own 17.8 per cent of shares in Webjet, compared to the board’s total shareholding of a mere 0.25 per cent.
Webjet’s board has recommended shareholders oppose the proposed appointments saying they would destabilise the board and undermine company performance. The Helloworld offer coincided with the delivery of half year results by Webjet which were in line with guidance issued last week.
Underlying earnings for the six months to September 30 were down 9 per cent to $14.4m, which Webjet attributed to a “tough domestic leisure market impacted by cost of living pressures and high airfares”.
Trading updates issued by both Qantas and Virgin Australia in the last fortnight suggested otherwise, showing strong domestic demand in the first quarter of the 2026 financial year and relatively stable airfares.
Webjet’s revenue fell 1 per cent to $67.9m, but the company agreed to pay a 2c a share fully franked dividend.
Webjet CEO and managing director Katrina Barry said they expected a softer market continuing in the 2026 financial year, and had made adjustments accordingly. “Our focus on delivering sustainable long-term growth remains unchanged,” said Ms Barry. “We are confident that our 2030 strategic plan provides the right framework to maximise shareholder value, with double total transaction value as a key measure of success.”
Dr Weiss has previously criticised Webjet’s focus on total transaction value, and raised concerns about the $17m acquisition of business travel agency Locomote which was expected to generate losses of as much as $900,000 in the second half of the financial year.
In a further headache for Webjet, former employee Meaghan Simpson is pursuing an unfair dismissal claim in the Federal Court, claiming she was sacked for highlighting irregularities in Ms Barry’s CV. The two parties have been ordered to attend mediation in February, and if it can’t be resolved, it will return to the court for a case management hearing before a judge.
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Originally published as Helloworld Travel launches $353m takeover bid for Webjet amid shareholder unrest
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