BUZZ-Australia's Webjet hits over five-month high on BGH Capital interest

Reuters
05-14
BUZZ-Australia's Webjet hits over five-month high on BGH Capital interest

** Shares of Webjet Group WJL.AX rose as much as 3.4% to A$0.92 in earlier hours, their highest level since December 9

** Stock eases gains to A$0.905, up 1.7%

** Australian online travel agency receives unsolicited non-binding indication of interest from private equity firm BGH Capital

** Cash offer to acquire controlling stake in co for A$0.8 per Webjet share

** RBC Capital Markets notes offer is at 10% discount to Webjet's last close, says any deal will likely require much higher bid

** Brokerage says shareholders likely to entertain offers starting from A$1.26/share to A$ 1.5/share

** RBC Capital Markets also notes peer Helloworld Travel's HLO.AX substantial ~5% stake, however, says investment in WJL appears "out of character" for HLO

** Stock up 4% YTD, including current session's moves

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))

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