A merger of three of New Zealand’s five largest motorhome providers has been given the green light by Tourism Holdings Ltd.’s (THL) shareholders.
According to a report by the Fairfax New Zealand News, the listed company’s board announced last month that it had offered $69.5 million to the owners of Kea Campers and United Rentals to acquire their companies. The deal was sealed with little fuss at a special shareholders’ meeting in Auckland yesterday.
THL, a motorhome rental firm, reported 97% proxies had voted in favour of the merger, while a show of hands at the meeting was unanimous.
THL will pay $7.4m through the issue of 12 million THL shares at 62 cents per share, with $3.9 million worth being distributed to the owners of United, while $3.4 million worth will go to Kea’s owners. A further $3.2 million will be paid in cash for the businesses, as well as the refinancing of $50.9 millon of debt in the companies.
A deferred payment of up to $8 million is contingent on meeting the expected sale price of motorhome vehicles.
The merger creates an entity with assets of $157 million, combined revenues of $95 million and a vehicle fleet of 2,500, though this will reduce to a total fleet size of 1,800 within two years.
THL said consumers would not see any immediate change to THL’s suite of seven motorhome brands: Maui, Britz, Mighty, Kea, United, Alpha and Econo.
THL chief executive Grant Webster said visitor numbers from Europe and the United Kingdom were stagnant, which meant the New Zealand market was oversupplied with motorhomes. He estimated the number of motorhomes for rent had increased 5% in the past three years, despite average visitor numbers from Europe and Britain falling.