ASX 200 drops, Webjet reveals B2B plan, Cimic wins again

The S&P/ASX 200 Index (ASX:XJO) fell today, Webjet Limited (ASX:WEB) released a B2B plan and Cimic (ASX:CIM) won another contract.

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The S&P/ASX 200 Index (ASX: XJO) fell by 0.7% today to 6,746 points.

Here are some of the main highlights from the ASX today:

Webjet Limited (ASX: WEB)

The ASX travel business announced a transformation strategy update today for its business to business division called WebBeds.

Webjet's plan is to make WebBeds the number one global business to business provider. It told investors that initiatives are underway to be 20% more cost efficient at scale.

It's expanding into new regions, serving new customers and taking advantage of changing travel patterns. Simplifying and refining technology and processes across the business are a key part of the plan.

Webjet said it's targeting AU$10 billion of total transaction value (TTV).

As part of the update, it said that it has made a US$4.1 million investment into a business called LockTrip Holdings UK, with an option to increase that to 51%.

LockTrip provides a business to consumer hotel marketplace, underpinned by blockchain technology with a utility token, LOC. LockTrip also provides its own decentralised public blockchain, Hydra chain, powered by the Hydra coin. This acquisition will accelerate the development of its own blockchain expertise, integrate Locktrip into the Webjet OTA for its business to consumer hotel offering and there's the potential for migration of the Rezchain application onto the Hydra chain because it solves many of the issues that prevent the wholesale adoption of Blockchain as an underlying platform.

Webjet also revealed that WebBeds is targeting a 62.5% earnings before interest, tax, depreciation and amortisation (EBITDA) margin after the reduction in costs. It's still targeting revenue to be 8% of TTV.

The Webjet share price rose 1%. 

Cimic Group Ltd (ASX: CIM)

Cimic announced today that CPB Contractors has been chosen by the Queensland Government to deliver the Bruce Highway upgrade.

The construct-only contract will generate revenue of $289 million for CPB Contractors.

Cimic explained that the upgrade of the Bruce Highway between Woondum and Curra is a priority road project and is being progressed as part of the national highway network. The goal is that it will provide a bypass east of Gympie and improve safety while reducing congestion.

Work on the project will commence in 2021 and is scheduled to be completed in mid-2024.

The Cimic share price fell 1%. 

Another bid for Vitalharvest Freehold Trust (ASX: VTH)

The agricultural real estate investment trust (REIT) has received yet another bid.

Roc Private Equity has lobbed another improved bid of $1.12 in cash for each Vitalharvest unit.

Vitalharvest is the target of a bidding war between Roc Private Equity and Macquarie Agricultural Funds Management as trustee for the Macquarie Agriculture Fund – Crop Australia 2.

The Vitalharvest share price went up 2.3%. 

Bailador Technology Investments Ltd (ASX: BTI)

The Bailador Technology Investments share price rose 1% today in reaction to one of its investments announcing an acquisition.

Bailador revealed that Instaclustr has acquired Credativ, a global provider of support for open-source relational database PostgreSQL, Kubernetes, Debian and other open-source solutions.

This acquisition reportedly increases the size and scale of Instaclustr, both financially and operationally. It will accelerate growth in Europe and add new technologies to the Instaclustr platform.

Despite this acquisition, Bailador has held its valuation constant in the absence of a third party transaction that values the consolidated entity.

David Kirk, Bailador co-founder and managing partner, said:

Instaclustr continues to be a standout performer in the Bailador portfolio and the acquisition of credativ adds to the capabilities of the company and further strengthens its strategic position.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Bailador Technology Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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