Webjet shareholders approve demerger plans for travel bookings provider

Webjet shareholders approve demerger plans for travel bookings provider
Edited by Travel Weekly


Webjet shareholders have approved a resolution to demerge the travel bookings provider into two ASX-listed companies. The demerger, unanimously supported by the board, passed with more than 97 per cent of shareholders voting in favour of the proposals.

Webjet shares were up 1.3 per cent to $7.57 by 12.25pm AEST. The existing listed company will be renamed WEB Travel Group and will own its global B2B travel distribution business WebBeds.

The company said its “soon to be listed spin-off” will be known as Webjet Group, comprising its B2C businesses, including Webjet OTA, GoSee and Trip Ninja.

Webjet outlined plans for the demerger earlier this year, noting that shareholders will receive one share in the newly created entity for every Webjet share held.

Roger Sharp.

“The board’s decision to propose the demerger reflects an assessment of the attractive but divergent growth opportunities available to both businesses, and followed an extensive strategic review which considered various structural alternatives including a sale to a third party and an initial public offer,” Webjet chair Roger Sharp said in a statement.

“On balance, it is the board’s view that separating the businesses into standalone entities with independent boards, management teams and capital structures will best position each business to pursue their independent strategies priorities and growth agendas.

“The Board’s decision to propose the demerger reflects an assessment of the attractive but divergent growth opportunities available to both businesses, and followed an extensive strategic review which considered various structural alternatives including a sale to a third party and an initial public offer.”

“On balance, it is the Board’s view that separating the businesses into standalone entities with independent boards, management teams and capital structures will best position each business to pursue their independent strategic priorities and growth agendas.

“This in turn will best enhance value for Webjet Limited shareholders.”

Webjet is the No.1 online travel agent in Australia and New Zealand and has driven the digitisation of travel for more than two decades.

“Webjet B2C is well positioned to succeed as a standalone business, with a strong Board, an executive team that has worked together for many years and a strong balance sheet with an expected $80-100m in cash,” Sharp said in the ASX statement.

“The business is in good hands under the stewardship of Don Clarke and Katrina Barry, alongside Brad Holman and Shelley Beasley, all of whom know the business intimately given their positions on the Webjet Limited Board and management team, and have extensive experience in the travel sector.

“I would like to thank the Webjet B2C Board and management team for their contributions to Webjet Limited and would like to wish them well as they pursue Webjet B2C’s future as an independent ASX-listed company, subject to receiving approval for the demerger today. I would also like to express my thanks to our shareholders for their ongoing and continued support.”

Webjet B2C does not expect to declare a dividend in FY25, but it does anticipate paying dividends in FY26 and in subsequent years.

WebBeds business is already one of the largest global players in the wholesale travel market with over 50,000 travel buyers across 140 source markets booking 17 million room nights across 500,000 worldwide hotels in FY24.

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