Takeover target NZE lowers guidance

CATHERINE HARRIS
Last updated 17:14 24/01/2013

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Listed tourism operator The New Zealand Experience has warned of a flat interim net profit when it reports to the market next month.

The company, which owns Auckland's Rainbow End fun park, is weighing a takeover bid from investment vehicle Rangatira Ltd and expects to make a statement on February 21.

The company said visitor numbers had been affected by disruptions as it revamps its Castle Land area.

While this had been disappointing, the company said stage one of the development was now open and the second stage was due to open in April.

NZE also lowered guidance for its full year profit as it anticipated refurbishment of three of its major rides and promotional costs associated with its new new Kidz Kingdom area.

It forecast an after tax profit of between $1.3 million to $1.4m, from $1.4m to $1.6m previously.

Shares in NZE were trading at 37c, one cent above the takeover price offered by Rangatira. 

The takeover bid was triggered by Rangatira's offer to buy a near-75 per cent stake in NZE from Canadian shareholder Garlow Management.

The takeover offer, which has so far been accepted by 82 per cent of shareholders, expires on February 15.

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- © Fairfax NZ News

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