Helloworld Travel has set its sights on acquiring Webjet, an online travel agency, with a strategic takeover proposal.

Webjet disclosed that the preliminary offer involves Helloworld purchasing all outstanding shares in the company at a price of 90 cents per share.

Currently, Helloworld holds a 17.27 percent ownership in Webjet.

The proposed acquisition hinges on several conditions, such as Helloworld completing a satisfactory due diligence process, the establishment of a scheme implementation agreement with standard terms, and a unanimous endorsement from Webjet’s board.

This endorsement is contingent on the absence of any better proposals and an independent expert’s validation that the deal is advantageous for Webjet’s shareholders.

Regulatory approvals and approvals from shareholders and the courts are also required.

The purchase would be funded through a combination of cash on balance sheet, and new debt facilities, Webjet said.

The board has agreed to provide Helloworld with an opportunity to conduct due diligence, noting that no binding offer was in place.

Shareholders have been told they do not have to currently take any action, and that more announcements will come.