Cushings buy 5.2pc of THL

By SIMON HENDERY tourism writer

Business veteran Sir Selwyn Cushing and his son David have taken a 5.2 per cent stake in the country's largest tourism company, Tourism Holdings.

"We think THL has got potential," David Cushing, an investment banker, said last night.

"We're long-term investors and we think it looks like a good investment."

The pair bought 5.1 million Tourism Holdings shares on-market between May 14 and last Friday, according to a substantial- shareholder notice filed with the stock exchange yesterday.

The notice was required because the Cushings' stake had reached 5.2 per cent above the 5 per cent level where notification of ownership is required.

David Cushing said he and his father had paid an average of about 99c a share for their holding.

The company's share price has been climbing over the past two months as concern abates about the impact of the Sars virus on international travel and tourism.

The shares closed at a six-month high of $1.22 yesterday.

David Cushing said it remained to be seen whether he and his father would increase their holding in the company any further.

"We're very happy with the stake we've got at the price we've paid and we'll just see what happens."

Tourism Holdings runs the Maui and Britz campervan and car rental businesses in New Zealand and Australia, the Kiwi Experience and Oz Experience backpacker bus networks, and several other New Zealand tourism businesses, including Johnston's Coachlines, Kelly Tarlton's in Auckland and the Waitomo glow-worm caves.

The company has undergone a significant restructuring and asset cull over the past three years under chief executive Dennis Pickup.

But it had to issue several profit warnings as it suffered the effects of a series of calamities which hit the tourism industry, including the September 11 terror attacks, the collapse of Ansett in Australia, the Sars virus and the Iraq war.

It also has had to grapple with integration problems through its expansion into Australia.

The Cushings' last high-profile foray into a public company was in February, when it emerged they had acquired a 5.5 per cent stake in plastics and packaging company Vertex. They sold out the same month, securing a six-figure profit.

Sir Selwyn Cushing, a former Air New Zealand chairman, owns Hastings stockbroking and financial advisory firm Esam Cushing & Co.

He and his Christchurch-based son also have a large stake in the Hawkes Bay stock and station agency Williams & Kettle.