Tourism Holdings Ltd Shares Surge Amid Takeover Bid
Shares in Tourism Holdings Ltd (ASX: THL) experienced a significant jump of over 30% in early trade following the announcement of a new takeover offer from a consortium led by Queensland businessmen Luke and Karl Trouchet, along with private equity firm BGH Capital. This marks the second attempt by the group to acquire the company, which had previously rejected a similar bid.
Second Attempt at Acquisition
BGH Capital’s initial offer, valued at NZ$2.30 per share, was turned down by Tourism Holdings in August of last year. The consortium has now returned with an all-cash proposal of NZ$3.10 per share. This news sent shares of the recreational vehicle company soaring, with the stock rising by 54.5 cents to $2.29 on Friday morning.
The company issued a statement to the Australian Securities Exchange (ASX), indicating that the current offer is non-binding and subject to due diligence. The proposed acquisition is contingent upon several factors, including:
- The satisfactory completion of due diligence
- Finalisation of debt arrangements
- BGH receiving final approval from its Investment Review Committee to submit a binding proposal
- A unanimous recommendation from THL’s Board for shareholders to accept the proposal, provided there is no superior alternative and an independent adviser concludes the offer is within or above their valuation range
Additionally, approximately 16% of the company’s shares are held by shareholders who have expressed support for engaging with the consortium and granting it access to due diligence.
Weaker Financial Outlook
In addition to the takeover developments, Tourism Holdings also updated its guidance for FY26. The company now anticipates underlying net profit to fall within the range of NZ$40 to NZ$43 million, a reduction from its previous forecast of NZ$43 to NZ$47 million.
The company cited ongoing global disruptions to international travel and a general decline in consumer confidence as key factors influencing its financial outlook. Despite these challenges, Tourism Holdings maintains a strong balance sheet position. The board described this outcome as positive given the scale of changes affecting global tourism.
Several factors are impacting performance, including:
- The effects of the current Middle East conflict on vehicle sales
- Softer conditions in the Australian domestic rental business
- Fluctuations in foreign exchange rates
Vehicle sales have been lower across all markets since March, attributed to geopolitical and macroeconomic factors. While customer interest and lead volumes remain positive, uncertainty has led to a reluctance among consumers to make purchase decisions.
Tourism Holdings also revised its net debt projection for the end of FY26, estimating it will be between NZ$460 and NZ$470 million, up from a previous expectation of less than NZ$400 million.
