There has been a lot of merger and acquisition (M&A) activity this year and the run has continued this week with an ASX All Ords stock just revealing that it has received a non-binding takeover offer.

Let's have a look at which stock is in the crosshairs of a suitor.

Why ASX All Ords stock?

The stock in question is online travel booking company Webjet Group Ltd (ASX: WJL).

Its shares are up almost 3.5% to 92 cents in morning trade on the back of news that private equity firm BGH Capital wants to acquire a controlling interest.

However, investors hoping for a big premium price tag may be severely disappointed. That's because the non-binding indicative offer that has been tabled is below where its shares trade today.

According to the release, the BGH Capital proposal is for a cash offer of $0.80 per Webjet share and is based on a number of key assumptions. This includes assumptions relating to cash levels, no external debt, no dividends or other distributions including by way of buyback being announced, and no business acquisitions prior to implementation.

Based on the where this ASX All Ords stock is currently trading, this offer represents a discount of 13%.

Though, it is worth noting that Webjet shares were trading at 66 cents last week and have rallied amid speculation that a large investor was building a stake in the company. So, it was a decent premium to last week's share price.

What's next?

The release notes that BGH Capital has indicated that while the transaction structure remains under consideration, its intention is to seek a controlling interest.

It has also indicated it is open to some existing shareholders retaining an ongoing equity interest, with the potential for ongoing access to liquidity by retaining its public listing. This is subject to appropriate tax and legal considerations.

The private equity firm has requested due diligence to assist it formulate a binding proposal.

Webjet's management team has warned shareholders that the proposal is non-binding and there is no certainty that it will proceed in accordance with its terms or even at all. As a result, it has told shareholders that they do not need to take any action in relation to the proposal at this time.

Following today's rise, Webjet's shares are up over 90% from the 52-week low they reached in early April.