Webjet Limited

WEB Details

Webjet has entered into a binding agreement to acquire JacTravel Group (Holdings) Limited for an enterprise value of £200 million. Acquisition will be funded by a fully underwritten accelerated pro rata non-renounceable entitlement offer, cash and debt funding and an issue of new Webjet shares to continuing management shareholders and the existing private equity owner of JacTravel ("Vendor Share Placement"). JacTravel is a market leading global B2B travel business based in Europe. Operating a multiband strategy via JacTravel and TotalStay, the company connects an extensive range of suppliers with travel providers and specialises in both multi-channel hotel distribution and tailored tours to inbound traveler groups visiting Europe. JacTravel has market leading positions in its core segments and is one of the largest independent platforms in Europe by TTV, with strong presence in key international cities.

JacTravel is highly complementary to WebBeds’ existing portfolio in terms of geography, product and customer mix, with an operating footprint that fills a key gap in Webjet’s current offering, being Tier 1 European cities, whilst increasing the breadth and depth of WebBeds’ existing position across Asia, the Americas and Middle East. In addition, bringing JacTravel under its broader Webjet banner and leveraging its inventory into WebBeds’ existing distribution network will provide deepened room night allocations, opportunities to realize synergies and accelerate growth of WebBeds globally. For the 12 months ended 30 June 2017, JacTravel generated TTV of £398 million (A$657 million5) and EBITDA of £19 million (A$32 million5). The Acquisition purchase price is £200 million (A$330 million5) to be paid in cash and new Webjet shares. The purchase price represents 10.5x FY2017 EBITDA and the Acquisition is estimated to be materially EPS accretive in FY17 on a pro-forma basis. The cash consideration for the Acquisition will be funded by the proceeds of the Entitlement Offer and A$145 million of existing cash reserves and debt funding. Webjet has successfully completed the institutional component of its fully underwritten 1 for 6 accelerated non-renounceable entitlement offer and raised approximately A$93 million from the subscriptions for new fully paid ordinary shares in Webjet (New Shares) at a price of $10.00 per New Share. The retail component of the Entitlement Offer ("Retail Entitlement Offer") will be open on Thursday, 10 August 2017 and close on Tuesday, 22 August 2017.


WEB Daily chart; (Source: Thomson Reuters)

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