Helloworld Travel Limited (HLO) has announced it has put forward an all-cash, non-binding indicative offer for Webjet Group Limited (WJL), valuing the company at roughly $353.3 million.
The proposal, announced alongside Webjet’s first-half earnings, marks the latest escalation in Helloworld’s steady push to grow its presence in the online travel space.
Helloworld wants to buy all the Webjet shares it doesn’t already own for 90 cents apiece through a scheme of arrangement.
With WJL sitting on 392,530,357 shares, the numbers give the company an implied equity value of about $353 million. Helloworld already controls 17.27 per cent of the register, equal to 67,792,433 shares, after increasing its stake throughout the year.
The travel agency giant argues the two businesses are logical partners and that a combined group would create a stronger platform for long-term growth.
For now, a takeover is far from a done deal. The Webjet board has allowed Helloworld to begin due diligence, effectively a deep financial and operational health check.
Any binding agreement will also need regulatory approval, court sign-off and the thumbs-up from Webjet shareholders.
“Our proposal represents compelling value for Webjet shareholders. A combination of Webjet and Helloworld would create a powerful business proposition in the dynamic travel bookings industry,” Helloworld CEO and Managing Director Andrew Burnes AO 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.”
Meanwhile, WJL confirmed its first-half statutory EBITDA fell 7 per cent year on year to $11.7 million, as previously flagged in unaudited results. Despite the softer earnings, the company declared its inaugural FY26 interim dividend of 2 cents per fully franked share, representing a full payout of underlying net profit after tax.
In October, Webjet unveiled the biggest brand transformation in its 27-year history with a new identity and expanded product verticals that go beyond airfares to reinforce its evolution from flight-focused OTA to fully fledged travel provider. Read more about that here.
KARRYON UNPACKS: At its core, the situation is straightforward: HLO wants full control of WJL, believes now is the time to make a move, and the Webjet board is willing to let them take a closer look. What happens next hinges on what Helloworld uncovers, and whether shareholders consider 90 cents a share a compelling enough offer.
