Webjet is about to announce an acquisition

Oktoberfest. Photo: Getty Images.

Webjet has gone into a trading halt pending an announcement about an acquisition and a capital raising to fund it.

In a notice to the ASX, there was no indication of the type of acquisition.

Last year the online travel booking agency bought New Zealand-based vehicle rental group Online Republic for $NZ85 million ($A80 million).

The move was a strategic one for Webjet which then said that Online Republic enables the business to expand its offering in car rental and enter the high growth motorhome rental market.

In its latest half year results, Webjet’s net profit after tax quadrupled to $39.4 million on the sale of its Asia-focused business unit Zuji and strong growth across its digital retail and digital wholesale business.

Profit from continuing operations rose 87% to $20 million and revenue climbed 48% to $92 million. Operating profit surged 68% to $30.6 million.

Last week, Webjet said its annual results will be subject to a qualified audit because of dispute with the online travel agency’s auditors, BDO.

Webjet says the issue is over “a technical accounting matter” relating to the treatment of transactions associated with a deal made last year global agency Thomas Cook.

The company is due to report its results on August 31.

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