Shareholders have overwhelmingly voted in favour of a demerger of Webjet Limited, with the company set to operate as two separate entities from next week.
One of Australia’s biggest online travel companies, Webjet Limited will be renamed WEB Travel Group post-demerger, while a spin-off company called Webjet Group Limited will also be created.
According to a statement on the ASX, Webjet Group Limited will be added to the S&P/ASX 200 Index prior to the opening of trading on 23 September.
The proposal to demerge the company was passed with a 97.56 per cent vote on Tuesday.
Put simply, WEB Travel will represent the B2B platform WebBeds, while Webjet Group will operate the B2C division including high-profile travel business Webjet OTA, global motorhome and car rental ecommerce site GoSee, and Trip Ninja, a tech company for complex travel.
“The board’s decision to propose the demerger reflects an assessment of the attractive but divergent growth opportunities available to both businesses, and followed an extensive strategic review which considered various structural alternatives including a sale to a third party and an initial public offer,” Chair Roger Sharp said.
“On balance, it is the board’s view that separating the businesses into standalone entities with independent boards, management teams and capital structures will best position each business to pursue their independent strategic priorities and growth agendas.”
In a recent interview with Karryon, Webjet B2C CEO Katrina Barry said “B2B’s pretty much been the focus for the last few years – and had the majority of capital allocation”.
“But now we have the opportunity… to invest in its next growth horizon. So it’s really the focus of a dedicated team, a dedicated board, a dedicated balance sheet, and we’ve got lots of opportunities… and now incredible financial resources that we want to invest in.”
Webjet Limited recently revealed its results for the 2023/24 financial year (FY24), showing record numbers across key metrics as well as a 400% increase in profit.
