KEY POINTS:
Shares jumped in Tourism Holdings after confirmation that cornerstone shareholders will sell their stakes to bidder MFS Living and Leisure (MPY) ahead of Saturday's deadline.
MPY has reached 58.6 per cent acceptances with its $2.80 a share bid, conditional on reaching 90 per cent ownership at which point it can compulsorily acquire the remainder of the shares.
MPY chief executive Marshall Vann said today United States-based Sterling Grace and associates had agreed to sell its 19.93 per cent of shares.
That followed advice from asset management firm AllianceBernstein that it would sell its 8.61 per cent stake, and news yesterday that the Accident Compensation Corporation was selling its 4.62 per cent stake.
Mr Vann said the latest acceptances were expected to encourage other shareholders to follow suit.
Forsyth Barr analyst Rob Mercer agreed, and called the offer price "credible" despite being below fair value.
Forsyth Barr valued the stock at $3.18, but Mr Mercer said the discount may be warranted due to industry volatility and THL's restructuring.
"We believe the momentum in the offer has swung in favour of MPY, particularly given that the accelerated appreciation of the NZ dollar has shifted THL's near-term earnings risk for FY08 to the downside," Mr Mercer said.
Earlier this month, MPY's bid was sweetened by 6 cents a share with a final dividend payment being brought forward.
Although MPY technically did not increase its offer, it sanctioned the dividend announcement, saying it would waive its condition for the takeover offer in respect to the payment of a final dividend.
THL owns 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.
THL shares closed up 2 per cent, or six cents, at $2.75.
- NZPA
