Webjet chief executive Katrina Barry has resigned less than two years after taking the role, as a lawsuit from the online travel agent’s former legal boss heats up and suitors continue to buy up stock despite a rejected takeover offer last month.
Webjet chairman Don Clarke praised Barry for her role in leading the demerger from Web Travel Group in 2024 and developing its new strategy.
“Katrina has played an important role in repositioning the newly formed Webjet Group and building the foundations for delivery of a significant transformation of the business,” he said.
The travel group confirmed its full-year guidance for the year ending March 31 and said Barry will support a transition to a new chief executive and completion of the financial accounts ahead of its release in May.
Webjet shares dived last month after it rejected two suitors, ASX-listed Helloworld and Gary Weiss-BGH, which offered bids of 90¢ and 91¢ respectively. Shares were trading on Monday at 53¢.
Webjet said last month that it “engaged constructively with Helloworld and BGH, providing both parties with due diligence access. The Webjet Board has not, however, received a proposal from either party that is consistent with the respective indicative proposals or capable of being put to shareholders.”
Helloworld has continued to acquire shares despite the rejection, lodging a substantial shareholder notice of 18.3 per cent on March 17. BGH owns an 18.3 per cent stake.
Barry’s resignation comes a month after the travel group’s online boss, David Galt, stepped down and less than a year after former general counsel, Meaghan Simpson, was sacked.
RBC Equity analyst Wei-Weng Chen said Barry and Galt’s resignations leave a management vacuum at a bad time for Webjet. Galt leaves the group at the end of this month.
“We view the departures of Webjet’s two most senior managers as potentially now creating a leadership vacuum which could play into the hands of recent would-be suitors who still both hold significant stakes in Webjet,” he said.
Chen added that Webjet’s confirmation of its full-year guidance on Monday “is also a positive which, we believe, could result in the resumption of discussions.”
Webjet is gearing up for the wrongful dismissal claim by Simpson which was filed in the Federal Court last October.
According to reports, Simpson alleges she was bullied and excluded from work. An ASX release by Webjet last June informed the market of Simpson’s departure.
This month, both parties to the case were ordered to provide document discovery by April 20 for the court hearing which is scheduled for December this year.
Webjet said on Monday that full-year guidance is on track despite the global turmoil.
“While global uncertainty continues to influence travel behaviour, demand to date has remained resilient, with travellers increasingly favouring domestic and short-haul destinations across Asia and the Pacific,” it said.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.