Ballylinch opens offer for THL

File photo / Thinkstock

Ballylinch LP yesterday launched its partial takeover bid for Tourism Holdings (THL).

Ballylinch acknowledges THL's share price, which was 74c yesterday, is above the 67.5c it is offering in its bid to up its stake to more than 50 per cent from 19.4 per cent. Ballylinch is seeking 40.85 per cent of the ordinary shares and redeemable shares it does not own.

"We still urge you to consider accepting our offer. In particular, there is no guarantee that, should our offer be unsuccessful, the share price will remain at current levels," Ballylinch said.

It said Northington Partners had certified that the offer was fair and reasonable as between the ordinary shares and the redeemable shares.

Brokers have said the bid is below asset backing but the company has under-performed.

Institutional investors include ACC with a 7.2 per cent stake and Tower Investments with just under 5 per cent.

The company has advised shareholders not to sell and to wait for an independent report and target statement.

THL is the largest provider of holiday rental vehicles in Australia and New Zealand.

- NZPA