What's Happening?
BGH Capital has increased its non-binding takeover offer for Webjet Group to 91 cents per share, surpassing Helloworld's recent 90-cent bid. Webjet Group, led by CEO Katrina Barry, confirmed the approach and granted BGH Capital access to due diligence.
BGH Capital holds 18.3% of Webjet Group, slightly more than Helloworld's 17% stake. The bid comes amid Webjet's disappointing financial results, including a 9% drop in underlying EBITDA due to challenging macroeconomic conditions and legal issues with the ACCC.
Why It's Important?
The increased bid by BGH Capital highlights the competitive nature of acquisitions in the travel industry, especially during economic downturns. It reflects strategic moves by private equity firms to capitalize on undervalued assets. The outcome of this bidding war could significantly impact Webjet's future operations and market position, influencing shareholder value and industry dynamics.
