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Highlights
- BGH Capital's A$0.80/share bid represents 10% discount to May 13 closing price
- Webjet cites deal structure and conditionality as key risks for shareholders
- Board maintains current valuation not reflected in the proposed offer
Australian online travel agency Webjet Group (ASX: WJL) has turned down a A$314 million (US$201 million) acquisition bid from private equity firm BGH Capital, citing that the proposal significantly undervalues the company. The offer, made public on Friday, proposed a price of A$0.80 per share, which is 10% below Webjet’s closing price of A$0.89 on May 13.
In a statement, Webjet’s board said the offer presents "significant uncertainty" for shareholders, pointing to concerns about the deal's structure and the numerous conditions attached to it. These factors contributed to the board’s unanimous decision to reject the proposal without engaging further.
“The Board considers that the BGH proposal involves significant uncertainty for the company and its shareholders, including in relation to its structure and proposed conditions,” the company said. While no further details of the deal’s conditions were disclosed, such commentary typically refers to financing, regulatory approvals, or strategic realignment requirements that could affect shareholder value.
BGH Capital’s unsolicited approach comes at a time when Webjet has been recovering from pandemic-era travel disruptions and has seen a rebound in international bookings. Market analysts suggest the company may be targeting better valuation amid improving sector conditions.
Despite the rejection, the market reaction has been muted. Shares of Webjet closed unchanged following the announcement, suggesting investors may have already priced in the possibility of strategic interest or see limited upside in the proposed offer.
There has been no immediate response from BGH Capital on whether it intends to revise its offer or abandon the bid altogether. The situation remains fluid as both sides weigh strategic options in a consolidating travel services market.






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