KEY POINTS:
MFS Living and Leisure said today its $2.80/share takeover offer for Tourism Holdings, conditional on receiving 90 per cent support, was unsuccessful.
MFS fell short by 7 percentage points. On Friday it had 74.4 per cent of the shares and today said it had 83 per cent after votes from the bid, which closed on Saturday, were counted.
MFS Living repeatedly said the offer would not be extended.
THL shares were trading on $2.70 before today's announcement.
MFS chief executive Marshall Vann blamed "a small number of institutions" for the bid's failure.
"That probably held us back from achieving our 90 per cent acceptance level," he said.
"We always made it clear that the offer was $2.80, closed last Saturday and needed 90 per cent acceptances. We have never wavered from this position."
Under the terms of the offer, acceptances received would now lapse and shareholders who accepted the offer were free to deal with their holding as they wished, he said.
"We will be looking for opportunities in New Zealand in the future and will keep the market informed of any developments."
He said no decision had been reached about what MFS would do with the 10 per cent stake it acquired from the Cushing family.
MPS listed on the New Zealand stock exchange on June 22 in anticipation of a successful bid and Mr Vann said it would remain listed.
"We believe that its high yield and favourable tax position for New Zealand resident tax payers makes it an attractive investment."
Fund manager Tower, with around 3 per cent of THL, was one of the key institutions that held out against the offer. Equities manager Wayne Stechman told NZPA his firm believed MFS' price was "reasonable but not compelling".
"We accept other people had a different view and the share price might dip back in the short-term, but they are assets that we like. There is a good long-term future in the company and we are happy to stay there."
Asked if New Zealand shareholders had tended to sell to quickly and this was a victory for the hold-outs, Mr Stechman said he did not get emotionally caught up on whether things should stay in New Zealand. Tower was happy to sell if someone was offering a full price, he added.
"If not, we are happy to own it.
"In a market that is reasonably fully priced, we are happy with the outlook."
Mr Stechman said MFS clearly had an interest in THL's assets, which include Kelly Tarlton's Antarctic Encounter and Underwater World, a concession on tours through Waitomo glow worm caves, Fullers Bay of Islands, Milford Sound Red Boats, Milford Deep Underwater Observatory, Awesome Adventures and a fleet of Maui, Britz, Skiwi and Backpacker branded motor homes and vans.
"They may just wait and come back, or buy a few more (shares) on market. I don't know."
THL shares did not trade immediately after the announcement but bids were down at $2.40 and offers at $2.65.
- NZPA
