Helloworld Travel Ltd (ASX: HLO) has lobbed a takeover bid for Webjet Group Ltd (ASX: WJL) on the same day the latter announced it will pay an inaugural dividend to shareholders.
The conditional Helloworld bid is priced at 90 cents per share, 19.2% higher than the 75.5 cents closing price of Webjet shares on Tuesday.
The price is also lower than the levels at which Webjet shares were trading as recently as August.
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Due diligence kicks off
Webjet said in a statement to the ASX on Wednesday that the board had considered the offer and agreed to provide Helloworld with an opportunity to conduct due diligence, but cautioned there was no guarantee any deal would eventuate.
The proposal is conditional on the satisfactory completion of due diligence by Helloworld, required regulatory approvals, and a unanimous recommendation in favour by the Webjet board.
As Webjet said in a statement to the ASX:
The Webjet board notes that there is no certainty that the Helloworld proposal will result in a binding offer for the company or a completed transaction. Further announcements will be made in relation to the Helloworld Proposal as appropriate.
Results reflect challenging conditions
Also on Wednesday, Webjet announced its first-half financial results, including the payment of an inaugural 2 cents per share, fully franked dividend.
The company said on Wednesday that first-half revenue came in at $67.9 million, down 1% on the same period last year, while net profit was $6.2 million, up 41%.
Webjet said it was a "challenging trading environment for the group", with bookings down 8% and total transaction volumes down 3%.
Domestic bookings were down by 10%, while international bookings were up 4% and made up 22% of total flight bookings.
The company will pay a 2-cent first-half dividend, equivalent to 100% of underlying net profit, "consistent with the announced intention of maximising the distribution of franking credits as they become available, including the payment of special dividends above the target ratio''.
Webjet said a proposed buyback program was on hold for now.
Webjet managing director Katrina Barry said the results were "broadly in line with expectations, demonstrating the resilience of our business, despite experiencing challenging market conditions''.
She went on to say:
As communicated last week as part of the update on preliminary 1H26 results and outlook for the balance of the year, with the expectation of a softer market continuing into 2H26, we have made prudent adjustments to our plans to ensure capital is deployed responsibly in the current environment on a balanced basis. Importantly, while remaining vigilant to near term trading conditions, our focus on delivering sustainable long-term growth remains unchanged.
Ms Barry said the company was confident that its FY30 strategic plan provided the right framework to maximise shareholder value, "with doubling total transaction volume as a key – though not the sole – measure of success''.
She added:
We have the right capabilities to deliver on this plan – with deep sector experience, proven execution in scaling travel businesses, and a blend of seasoned executives and fresh perspectives. This positions the business well to continue to progress the next stage of growth and evolution to deliver enhanced shareholder value over the medium term.
