KEY POINTS:
Tourism Holdings said today it was selling two-thirds of its interest in Johnston's Coachlines to a joint venture, freeing up $11 million for the tourism operator.
It said a group of private investors would buy the controlling stake and THL would retain its other bus operations.
The company said it was also looking at various options for the company in the aftermath of the failed $277 million takeover bid by Queensland's MFS Living and Leisure.
THL shares closed yesterday at $2.40, having traded between $1.66 and $2.44 in the past year.
The joint venture will trade under the name Johnston's Coachlines Limited and is effective from August 1.
THL said the joint venture partner, Coach Investments Ltd, is "a group of investors with significant tourism industry experience together with substantial current involvement and experience in the operation and hire of commercial vehicles including tour coaches".
The company will be managed by Philip Manning, who has senior management experience in coaching and tourism businesses and he will also be an investor in the joint venture through Coach Investments.
The CEO of THL, Trevor Hall, said the change would allow Johnston's to tighten its business focus while retaining strong ties with THL.
The joint venture will have its own board and management structure.
After a transition period, THL will maintain an arms length relationship with Johnston's, Mr Hall said.
THL will continue to own and operate its other coaching interests including Kiwi Experience, Airbus and Great Sights.
Over 83 per cent of THL's shareholders agreed last month to sell to MFS at $2.80 per share, but the bid was conditional on gaining 90 per cent control.
- NZPA
