Tourism Holdings stampeded into revealing sales talks over Waitomo businesses

Tuesday, 23 October 2018

Tourism Holdings is keeping its caves business but selling its other Waitomo activities.

Tourism Holdings has been forced to reveal it is negotiating with a potential buyer of some of its Waitomo businesses and Kiwi Experience guided bus tours.

Stock Exchange listing rules require companies to keep all shareholders equally informed of changes affecting them to avoid the possibility of insider trading by people with privileged access to information.

'Tourism Holdings has cause to believe that confidentiality may not have been maintained whilst in discussions with third parties on the possible sale of some of the tourism businesses within its portfolio,' chairman Rob Campbell said.

THL made its first foray into the Waitomo business in 2003, but in recent years has changed its focus from running attractions to expanding its motorhome rentals businesses including Maui, Britz and Mighty brands across New Zealand and Australia.

* Tourism Holdings reaps rewards from US business with doubling of profit

* US expansion helps Tourism Holdings Ltd to record $30m profit**

When he reported the last annual result in June, Campbell warned the company was gearing up for more investment to support its overseas businesses.

'THL is in discussions regarding the Kiwi Experience business and some of the Discover Waitomo businesses, including Black Water Rafting, Ruakuri and the Waitomo Homestead.

'The Waitomo Glow Worm Caves business is not included as an asset for sale,' Campbell said.

'The discussions are incomplete and, if they progress to a definitive transaction, we expect to be able to provide more information during November or December,' he said.

The share price of the company has been volatile in recent weeks with a high of $6.85 in June, falling to $5.12 in recent days.

THL is the largest provider of rental vehicles for rent and sale in Australia and New Zealand, and the second largest in North America.

In the US it owns and operates the Road Bear RV Rentals & Sales brand and El Monte RV Rentals & Sales, a joint venture with rental vehicle manufacturer Thor Industries. Brands include Roadtrippers, Mighway and CamperMate.

In the UK, the company owns half of Just go Motorhomes.