Webjet outlines structure for demerger of consumer business
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The news: Travel bookings provider Webjet has outlined the transaction structure and leadership for its consumer facing business that is proposed to be demerged.
The numbers: Webjet said if the demerger is approved, shareholders will receive one Webjet B2C share for every Webjet share held, with both companies to be separately listed on the ASX.
Webjet will not retain a shareholding in the Webjet B2C business and will be renamed to align with its ownership of the global bedbanks business, WebBeds.
Both companies will maintain net cash positions reflecting capital structures. Post-demerger, Webjet’s $250 million convertible notes maturing in 2026 will remain with Webjet B2B, although the conversion price will be adjusted to account for the demerger, it said.
The context: Webjet has appointed non-executive director Katrina Barry as CEO of the Webjet B2C business, with the online travel agent (OTA) business executive Layton Shannos to take over as CFO. Don Clarke is proposed to be appointed as chair of Webjet B2C, with Brad Holman and Shelley Beasley to be appointed as non-executive directors.
The travel bookings provider last month flagged the demerger plan which will separate its growing WebBeds wholesale bookings business from the consumer facing business.
The demerger is expected to be completed in 2024, with a shareholder vote set for September, the company said on Monday.
The source: ASX announcement
