Nov 21 (Reuters) - Australia's Webjet Group WJL.AX became the centre of a potential takeover tussle on Friday after private equity firm BGH Capital lifted its bid to A$0.91 a share, edging past a rival approach from Helloworld Travel HLO.AX earlier this week.

Under the offer, BGH would acquire the rest of the shares it does not already own in Webjet, valuing it at A$357.2 million ($230.18 million).

The sweetened offer comes just days after travel distribution firm Helloworld tabled its own bid of A$0.90 apiece. Both offers remain conditional and non-binding, but their arrival signal intensifying competition for the online travel agency.

The latest offer marks an increase from BGH's earlier A$0.80 per-share proposal, which Webjet's board rejected in May as undervaluing the company.

Shares of Webjet rose 2.8%, hitting their highest level since September 19.

BGH, which already holds an 18.3% stake through a cooperation agreement with investment firm Ariadne Australia ARA.AX and investor Gary Weiss, has sought due diligence, which the Webjet board agreed to grant under a confidentiality pact.

The independent private equity firm's offer is subject to conditions including a 75% minimum acceptance threshold, regulatory approvals and the board's unanimous recommendation, Webjet said in a statement.

Helloworld, which owns 17.3% of Webjet, had said a merger would create "a powerful business proposition" in the travel bookings industry and has also been granted due diligence access.

Melbourne-headquartered Webjet, which spun off from its former parent, now called Web Travel WEB.AX, in 2024, reported a 9% decline in its first-half underlying earnings on Wednesday.

It also logged lower bookings for the first half, citing cost-of-living pressures weighing on leisure travel demand.

($1 = 1.5518 Australian dollars)

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Alan Barona)

((Rajasik.Mukherjee@thomsonreuters.com;))