Webjet Limited (ASX: WEB) is in the headlines again this morning as official takeover offers are seemingly getting closer.
According to reporting by the Australian Financial Review’s Street Talk, the travel company’s Board has formed an independent committee with non-executive chairman Roger Sharp who will work with Webjet’s advisers and decide which potential buyers will get a look at the confidential numbers and information.
Potential buyers are reportedly working on early deal preparations such as getting their adviser teams in place and signing confidentiality agreements.
There could be a bidding war because there are a few different potential bidders. There’s one trade name whilst the rest are private equity players. Street Talk has already named KKR, BGH Capital and Pacific Equity Partners as three of the outfits that are sniffing around Webjet.
Of course, there is no guarantee that an official offer will come through that the independent committee is happy with. This process has already been going for a while and seemingly no good bids have come through yet.
The Webjet share price has risen by 36% since the middle of October, so it’s not as compelling as it was a few months ago.
However, travel companies are currently coming under pressure as investors worry about what the Chinese coronavirus could do for global travel if it spreads further. The Webjet share price is down 5% in less than a week.