(Reuters) -Australia’s Webjet Group became the centre of a potential takeover tussle on Friday after private equity firm BGH Capital lifted its bid to A$0.91 a share, edging past a rival approach from Helloworld Travel earlier this week.
Under the offer, BGH would acquire the rest of the shares it does not already own in Webjet, valuing it at A$357.2 million ($230.18 million).
The sweetened offer comes just days after travel distribution firm Helloworld tabled its own bid of A$0.90 apiece. Both offers remain conditional and non-binding, but their arrival signal intensifying competition for the online travel agency.
The latest offer marks an increase from BGH’s earlier A$0.80 per-share proposal, which Webjet’s board rejected in May as undervaluing the company.
Shares of Webjet rose 2.8%, hitting their highest level since September 19.
BGH, which already holds an 18.3% stake through a cooperation agreement with investment firm Ariadne Australia and investor Gary Weiss, has sought due diligence, which the Webjet board agreed to grant under a confidentiality pact.
The independent private equity firm’s offer is subject to conditions including a 75% minimum acceptance threshold, regulatory approvals and the board’s unanimous recommendation, Webjet said in a statement.
Helloworld, which owns 17.3% of Webjet, had said a merger would create “a powerful business proposition” in the travel bookings industry and has also been granted due diligence access.
Melbourne-headquartered Webjet, which spun off from its former parent, now called Web Travel, in 2024, reported a 9% decline in its first-half underlying earnings on Wednesday.
It also logged lower bookings for the first half, citing cost-of-living pressures weighing on leisure travel demand.
($1 = 1.5518 Australian dollars)
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Alan Barona)
