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Helloworld Travel (ASX: HLO) is making a $353 million takeover play for Webjet Group (ASX: WJL) with the conditional offer coming on the back of a weakened interim result from the target company.
Helloworld, which already owns 17.27 per cent of Webjet, has been granted due diligence to progress a potential binding offer for the business – the product of a demerger that spun off the Web Travel Group (ASX: WEB) last year.
The indicative proposal put forward by Helloworld prices Webjet’s shares at 90c each, which is a significant premium to their closing price yesterday of 75.5c.
Webjet shares hit the asking price of 90c in early trade this morning, before easing back to 87.5c each by 10.14am (AEDT) – up 15.9 per cent.
Shares in Webjet are down from a 2025 high of 99.5c reached in August, with the company’s stock impacted by challenging domestic holiday bookings.
“Our proposal represents compelling value for Webjet shareholders,” says Helloworld CEO Andrew Burnes.
“A combination of Webjet and Helloworld would create a powerful business proposition in the dynamic travel bookings industry.
“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.”
Helloworld Travel is a travel distribution company operating in both the retail leisure and business travel markets with 900 employees globally and 2,600 members in its travel agency and broker networks in Australia and New Zealand.
The group posted total transaction value of $3.8 billion in FY25, down 8.6 per cent from a year earlier, but profit after tax rose 4.4 per cent to $33.2 million.
The Webjet Group businesses comprise the Webjet OTA (online travel agency) divisions, GoSee, a car and motorhome rental platform, and Trip Ninja, a travel technology business that helps travel companies improve their booking systems.
Webjet today announced total transaction value of $726 million, down 3 per cent, for the first half of FY26 amid challenging market conditions.
Domestic bookings fell 10 per cent while international bookings lifted 4 per cent, leading to a 9 per cent fall in underlying EBITDA to $14.4 million.
However, underlying NPAT was up 16 per cent to $7.8 million which CEO Katrina Barry says was broadly in line with expectations and demonstrated the “resilience of our business” amid the challenges.
Webjet points out that Helloworld's proposed cash price for its shares will not be reduced by the inaugural post-merger 2c-per-share dividend the company announced today following the results announcement.
“Helloworld has indicated that the proposed transaction would be funded through a combination of cash on balance sheet and new debt facilities,” says Webjet.
“After careful consideration of the Helloworld proposal, the Webjet board has agreed to provide Helloworld with an opportunity to conduct due diligence.
“The Webjet board notes that there is no certainty that the Helloworld proposal will result in a binding offer for the company or a completed transaction.”
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