BGH Capital bids for controlling interest of Webjet
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The news: Webjet has received a non-binding proposal from BGH Capital to acquire a controlling interest in the group, after BGH, corporate raider Gary Weiss and Ariadne built a 10.76% stake in the online travel group.
The numbers: Webjet on Tuesday said BGH proposed a cash offer of $0.80 per Webjet share for a controlling interest and has requested due diligence ahead of making a binding proposal.
Webjet also confirmed BGH Capital was the mystery investor seeking to acquire up to 5% of shares in the group late last week, making an cash offer of $0.80 per Webjet shares amounting to a 5.89% stake.
A substantial shareholder notice published Monday outlines that Portfolio Services Pty Ltd, an entity associated with Ariadne Australia and Gary Weiss, controls 4.87% in Webjet stock, and that co-operation agreement will see the trio cooperate on their joint 10.76% stake.
The context: BGH indicated that its intention is to seek a controlling interest in the $360 million travel website, and that it is open to some existing shareholders retaining an ongoing equity interest in Webjet, with the potential for ongoing access to liquidity by retaining its public listing.
Monday's substantial shareholder notice says that the group agree to co-operate and work together in relation to the affairs of Webjet, and that the “parties will consult with one another as to how they will exercise the voting rights of their shares on each resolution at any meeting of the members of Webjet Group.”
Additionally, the notice says that the agreement between the investors will not preclude BGH from buying further shares in Webjet, but sets a six-month standstill during which the parties will not pursue joint bids with third parties.
The sources: Webjet ASX announcement, Substantial Shareholder Notice
