The Webjet Limited (ASX: WEB) share price is currently flying higher than the rest of the ASX, it’s up almost 10%.
I have regularly been writing over the past few months that I thought Webjet looked very good value considering all of the growth that it’s generating.
Now it seems that investment bankers and private equity think the same thing.
According to reporting by the Australian Financial Review, Goldman Sachs is drumming up interest in Webjet and pitching it to private equity firms that have the financial firepower to afford a takeover. The figure touted is around $2 billion.
The AFR speculated that Goldman Sachs is seeking out interest with Webjet’s blessing. Other online businesses have been taken over after involvement by Goldman Sachs including Menulog, Trade Me and Wotif.com.
Of course, Webjet put out a statement that didn’t really confirm or deny anything. It said that it:
“Notes recent media speculation in relation to expressions of interest in the company. The company’s objective is to create value for its shareholders and from time to time we consider acquisition interest in the business.
“Should a proposal be received that was compelling and certain, the company would put it to shareholders. No such proposal exists at present. Webjet continues to be focussed on executing its growth strategy, as articulated at the recent AGM in November.”
Even after today’s rise, it’s still only priced at 14x FY21’s estimated earnings. I’d be happy to buy today, even if it meant I was only a shareholder for a relatively short time if a takeover offer came in.
These 3 stocks could be the next big movers in 2020
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- $3,000 invested in these 3 ASX shares could make you a fortune over the next 10 years – September 26, 2020 9:48am
- How to create a yearly income of $65,000 in dividends – September 26, 2020 8:50am
- I think the Brickworks (ASX:BKW) share price is a buy – September 26, 2020 7:28am