A $32.4 million takeover offer for Tourism Holdings has been criticised as too low, as New Zealand-based investment company Ballylinch seeks to take its stake from 19.1% to beyond 50%.
Ballylinch had gained a 19.1% stake in Tourism Holdings, which it bought from United States-based Sterling Grace Capital Management for $17.2 million, about a fortnight ago.
It had since offered 67.5c a share for up to a further 40.8% stake in Tourism Holdings, conditional on gaining 50% acceptances, which amounted to a 12.5% premium on the share price before the takeover bid.
Tourism Holdings shares had since gone to 75c yesterday, but Craigs Investment Partners broker Peter McIntyre said Ballylinch might have to reconsider its offer, in the region of 85c per share, saying 67.5c per share was "opportunistic".
"The [67.5c] offer is not enough to get investors excited enough to sell," Mr McIntyre said.
While saying Tourism Holdings has been a "perennial under-performer" for investors in recent years, Ballylinch wanted a share in the New Zealand tourism market and would make positive changes if the takeover was completed, Mr Mcintyre said.
Tourism Holdings provides rental vehicles in Australia and New Zealand under the Maui, Britz, Backpacker and Explore More brands, with most vehicles provided by its manufacturing company, CI Munro.
For the six months to December, Tourism Holdings reported a loss of $1.3 million, with revenue down 8% from a year earlier to $84.9 million.
