Takeover target NZE lowers guidance

Last updated 17:14 24/01/2013

Relevant offers

National business

Pumpkin Patch sale possible but store closures likely in coming weeks Australia could soon be importing milk, dairy farmers warn amid $1 a litre war Cloud computing: get with it or get left behind Banker involved in alleged mortgage fraud fights for name suppression Australian deal triggers option for NZME to acquire 3000 advertising panels Marlborough ASB Theatre 'tracking to budget' Eight common airport scams and how to avoid them Government announces funding for new Marlborough wine research institute Pattrick Smellie: Global trade politics just got harder Young have biggest reservations about the 'pros and cons' of the internet

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.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content