Webjet shareholders approve demerger
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The news: Webjet shareholders have approved a resolution to demerge the travel bookings provider into two ASX-listed companies.
The numbers: The demerger, which was unanimously supported by the company's board, passed with over 97% of shareholders voting in favour of the proposals.
Webjet shares were up 1.3% to $7.57 by 12:25pm AEST.
The context: The existing listed company will be renamed WEB Travel Group, and will own its global B2B travel distribution business WebBeds.
The company said its "soon to be listed spin-off" will be known as Webjet Group, comprising its B2C businesses, including Webjet OTA, GoSee and Trip Ninja.
Webjet outlined plans for the demerger earlier this year, noting that shareholders will receive one share in the newly created entity for every Webjet share held.
What they said: "The board's decision to propose the demerger reflects an assessment of the attractive but divergent growth opportunities available to both businesses, and followed an extensive strategic review which considered various structural alternatives including a sale to a third party and an initial public offer," Webjet chair Roger Sharp said.
"On balance, it is the board's view that separating the businesses into standalone entities with independent boards, management teams and capital structures will best position each business to pursue their independent strategies priorities and growth agendas," he said.
The sources: ASX announcement, ASX announcement
