Webjet Surges 17% as Helloworld Tables A$0.90 Cash Offer with 54% Premium

Helloworld’s A$0.90 Cash Bid Sends Webjet Shares Soaring 17%

Webjet (ASX: WJL) surged 17% today after Helloworld Travel Limited (ASX: HLO) revealed a non-binding proposal to acquire all remaining shares of Webjet that it does not already own. The offer comes in at A$0.90 per share in cash, and while the structure is still early stage, the premium is hard to ignore. It represents a 31% uplift against Webjet’s undisturbed closing price of A$0.69 on 7 May, a 54% premium to the one-month VWAP of A$0.58, and a 19% lift compared with yesterday’s close of A$0.755.

Hello World is clearly signalling a true control level premium rather than trying to slide in quietly with a low-ball approach. The mechanics of the dividend adjustment also tell an interesting story. The A$0.90 cash consideration will not be reduced by the near-term dividend already scheduled in Webjet’s first half results, which means shareholders can still collect that payout without losing value on the offer. Beyond that, any additional dividends or capital returns will reduce the final price, which is a sensible way for Helloworld to protect itself from leakage before completion.

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Why does HelloWorld want Webjet?

Webjet’s share price had been under pressure in recent months after the demerger of its high-growth B2B business (WebBeds → now Web Travel Group ASX:WEB) and a softer domestic travel environment. On 19 November, Webjet reported a 9% decline in underlying 1H FY26 EBITDA and warned full-year earnings could be up to 14% lower, citing cost-of-living pressures and still-elevated airfares.

That weakness has made the high-quality online travel agency (Webjet OTA + GoSee car/campervan platform) more strategically attractive and affordable for Helloworld, which operates a largely bricks-and-mortar and corporate travel network. A combination would create one of Australia’s largest integrated travel groups with strong retail agencies, corporate travel, wholesale/inbound capability, and a leading digital OTA platform, delivering obvious cross-sell and cost-synergy potential.

Analysts remain bullish

It is worth noting that analyst sentiment on Webjet has remained surprisingly firm despite the recent volatility. 9 analysts still rate the stock as a buy, which shows there is confidence in the underlying business even as the market has pulled the share price back. Part of that rerating came after softer domestic travel trends, with revenue slipping by one percent and total bookings falling to 724 thousand from 784 thousand the year before.

This slowdown has increased the strategic attractiveness of a potential deal. The competitive intensity in the travel sector is rising, and combining Helloworld’s network with Webjet’s platform could unlock synergies that neither company can achieve on its own. It is early days, but the strategic logic is becoming clearer as the fundamentals shift.

Profitability Takes the Lead as Webjet Targets 27% EBITDA Margins by FY27

Consensus appears to be pricing in a softer revenue outlook into 2026 before forecasting a 10% rebound the year after. The real value driver for Webjet is shifting away from pure top-line momentum and toward profitability. Analysts expect EBITDA margins to lift meaningfully, moving from 18% today to 27% in FY27. That kind of margin expansion tells a clearer story about where the long-term upside can come from, especially if the business continues to streamline its model and lean into higher-quality earnings rather than chasing volume for the sake of growth.