The Webjet Limited (ASX: WEB) share price will be on watch on Tuesday after takeover speculation returned.
What is happening?
In December there was speculation that the online travel agent was a takeover target of a private equity firm.
Webjet responded to the speculation, saying:
“Webjet 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.”
However, this morning there are reports that Webjet is readying itself for a takeover approach.
According to the AFR, it understands that CEO John Guscic and the Webjet board were together in December to discuss how much they believed the company was worth if it pursued a sale.
This follows the purported receipt of indicative views on the company’s valuation last month from prospective buyers. These are then believed to have been discussed at the aforementioned board meeting.
Whilst the report acknowledges that it is unclear if talks have progressed any further or if due diligence has been granted, sources have revealed that Herbert Smith Freehills and MinterEllison have been appointed as legal advisers to Webjet.
This appears to demonstrate that this is more than just speculation and that something is brewing behind the scenes.
Who would buy Webjet?
Webjet is likely to be an attractive option for private equity firms that are sitting on a mountain of cash right now.
The report suggests that BGH Capital and KKR could be suitors. Though, there is also believed to be interest from Europe, with Spain’s Hotelbeds rumoured to be looking over Webjet’s fast-growing WebBeds business.
The post Webjet shares on watch as takeover speculation intensifies appeared first on Motley Fool Australia.
But given its attractive valuation and strong long-term growth potential, I can't say I'm surprised by the rumours.
Here are more attractively priced shares with lots of potential. Analyst Names The Best 3 Blue Chip Shares To Buy Now
You’re invited! For a limited time, The Motley Fool Australia is giving away a fantastic FREE report detailing our 3 TOP BLUE CHIP SHARES to buy and own for now and beyond!.
So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!
Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...
While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...
Even better, Stock #3 offers a whopping grossed-up dividend of over 6%! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.
You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor James Mickleboro 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020