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News for January 23, 2022

New Zealand’s Campervan and Tourism Company Set to Acquire Australian Tourism Business

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New Zealand’s campervan and tourism company Tourism Holdings Limited (THL) has signed an agreement to purchase Australian tourism business Apollo Tourism & Leisure.

THL will finance the purchase by means of shares. One THL share will be offered for every 3.68 Apollo shares held by the Australian company’s shareholders.

The new entity will be controlled by about 25 percent of Apollo’s investors and 75 percent of THL’s shareholders.

“THL is proactively moving to build a more resilient business and expand its international reach, rather than seeking to wait out market uncertainty from the pandemic,” THL chair Rob Campbell said.

Campbell said that the merger would assist both companies in managing the uncertainty that the tourism industry faces due to the pandemic.

THL Chief executive Grant Webster said the deal would result in a more robust company with a more significant presence on the world stage.

“This takes THL into more markets, as a global commercial RV rental leader with businesses in Canada and the US, Europe, and the UK as well as our Australasian operations, supported by strong manufacturing capability and retail vehicle sales in Australia and New Zealand,” Webster said.

THL stated that the merger would increase between AU$17 million to AU$19 million to its overall profits on an annual basis.

The company said that the deal would also reduce the amount of debt by about AU$40 million due to the use of fewer vehicles.

The transaction requires approval from Apollo shareholders, financing and court approvals within Australia and New Zealand, and other requirements set forth in the arrangement scheme of implementation deed.

The project is anticipated to be completed by the second quarter of 2022.

THL will apply for a secondary listing on the Australian stock exchange if the deal becomes a success.

Apollo Managing Director Luke Trouchet, who would be a major shareholder in THL, expressed that THL and Apollo share a similar operating model and like-minded culture.

“We both believe strongly in the potential of the global RV market,” Trouchet said.

THL declared that the first half is expected to yield an overall loss of AU$4 million to AU$7 million, including about AU$2 million in transaction expenses incurred so far for THL’s Apollo deal.

The report said that its outlook for the whole year was uncertain since it was unlikely that there would be any significant travel between New Zealand and Australia in the period ending June.

The company stated that it was closely watching the progress of the Omicron variant to determine the impact it could have on travel preferences as well as domestic and international travel limitations.

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Modern Campground

Modern Campground

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