THL, Kea, United Campervans merger approved
Tourism Holdings Limited (THL) shareholders have voted to approve its merger with motorhome rental competitors Kea Campers and United Campervans in a $69.5 million deal.
The listed tourism company held a special shareholders meeting in Auckland this afternoon to decide on the deal which it first proposed last month.
THL will pay $7.4m through the issue of 12 million THL shares at $0.62 per share and a further $3.2m in cash for the businesses, as well as refinance $50.9m of debt in the companies.
A deferred payment of up to $8m is contingent on vehicle selling prices meeting expectations.
The company said over 95 per cent of proxies filed before the meeting were in favour of the merger, while a unanimous show of hands at the meeting sealed the deal.
United owner Kay Howe will also join THL's board while Kea founder Grant Brady will run THL's motorhome fleet business.
The merger creates an entity with assets of $157m, combined revenues of $95m, and a vehicle fleet of 2500 although this will reduce to a total fleet size of 1800 in two years.
THL chief executive Grant Webster said the deal was based on a need to rationalise motorhome vehicle numbers in the New Zealand market because of stagnating visitor numbers from the likes of Europe.
- © Fairfax NZ News
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