New Zealand-based motorhome rentals operator Tourism Holdings (THL) is recommending shareholders reject a partial takeover offer from Kiwi limited partnership Ballylinch.
According to Stuff.co.com, Wellington, THL said in a target company statement released to the NZX that the offer price to acquire 40.85% of shares Ballylinch does not already own is materially below the fair value range determined by an independent adviser’s report.
The report’s author, Simmons Corporate Finance, said there is no compelling reason to accept the offer and the offer price is below the current market price.
The offer, if successful, would give Ballylinch a controlling ownership of between 50.01% and 52.20% of ordinary shares. It currently holds 19.14% of THL shares.
THL said the offer comes at a time when its performance has been affected by the global financial crisis, the persistently high New Zealand and Australia currencies and a series of natural disasters in both countries which have affected global tourism flows.
The group also said that while John Grace, sole director of the limited partnership’s general partner Ballylinch General (BGL), was a long-standing and supportive shareholder of THL, the board is ”unaware of any further specialist experience or expertise” that Ballylinch LP brings to the company.
THL has a number of leading brands including Maui, Britz, Kiwi Experience and the Waitomo Glowworm Caves.
Ballylinch is wholly owned by Scanhard Trustee Company ()STCL) which is controlled by two Hastings’ lawyers.