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Gullivers Travel Group could be set to change hands for the third time in less than 18 months as its Australian owner MFS considers offers for a majority stake in its Stella Group tourism division.
ASX-listed MFS and stapled security MFS Living and Leisure, which is dual-listed on the Australian and New Zealand stock exchanges, were placed into trading halts yesterday as MFS announced "unsolicited proposals" for Stella as well as a change in CEO.
Gullivers Travel Group, the parent of retail travel agencies Holiday Shoppe and United Travel, was listed on the NZX in 2005 but survived less than 18 months as a public company after Australian firm S8 bought it out for $235 million in September 2006.
Last year MFS bought out S8, transferring the business to the Stella Group, which owns a chain of Peppers and Breakfree resorts in New Zealand.
In an announcement to the ASX yesterday, MFS said: "MFS is considering unsolicited proposals received last night from a number of parties in relation to the purchase of a majority interest in Stella as well as a change in the CEO of MFS."
A spokesman for MFS said the company expected to make a further announcement regarding Stella by tomorrow when the trading halt is due to be lifted.
MFS hit the Australian headlines last week when it received a takeover bid from rival investment firm City Pacific for the fund management arm of its business, but not for the tourism part.
MFS announced a proposal to split off its tourism business and list it separately on Friday as well as raising A$550 million ($635 million) from investors to reduce debt.
The move evoked strong negative reactions from investors, concerned MFS was facing financial trouble.
The company's share price fell by almost 70 per cent in one day, falling from A$2.19 to close at 99c on Friday.
Yesterday City Pacific also announced that after a review it intended to withdraw its merger proposal.
"Discussions continued over the weekend and a draft proposal was submitted, however the parties were unable to reach agreement," it said.
Soon after the news that talks had failed MFS CEO Michael King announced his resignation.
He has been replaced by his deputy Craig White.
"Following the market's reaction to the de-merger proposal released on Friday, it was considered to be in the company's best interest that King resign as chief executive officer, effective immediately," the company said.
King also resigned as a director of MFS Living and Leisure which MFS has a 19.9 per cent shareholding in.
MFS Living and Leisure unsuccessfully tried to takeover Tourism Holdings last year and is in the process of applying for consent to build an A$18 million tree-top walkway in the South Island's Lake Brunner region.
