KEY POINTS:
The takeover bid by MFS Living and Leisure for Tourism Holdings will get a major boost today with acceptances from two more major shareholders.
Australian-based MFS Living is offering $2.80 a share for all stock, conditional on 90 per cent acceptance - the point at which it can acquire all remaining shares
Sterling Grace - representing a group of US investors - has raised its stake in the NZX-listed company to 19.93 per cent from 18.8 per cent, paying $2.70 a share. MFS Living chief executive Marshall Vann said that Sterling Grace would accept the offer.
And the Business Herald also understands that AllianceBernstein, which manages some stock for 12.4 per cent stakeholder AXA, will also accept the offer in respect of a 8.5 per cent holding.
Meanwhile, 4.62 per cent shareholder Accident Compensation Corporation yesterday accepted the bid.
The acceptances would take MFS Living's total stake to 58.52 per cent.
The move by Sterling Grace would give the takeover a lot of momentum, Vann said.
"You are always nervous but I did keep saying ... $2.80's a really good price and that's why we'll stick on it," he said.
"I can probably sleep a little bit better tonight but obviously there's a lot of retail holders out there still to accept."
Neither the offer price nor the deadline would be extended.
"The offer is final," Vann said. "We will not waive our condition requiring a 90 per cent shareholding and, if the offer is unsuccessful, we will not seek to buy any part of Tourism Holdings separately."
Contact with shareholders had indicated that many retail investors were awaiting developments, Vann said.
"I'm certain this will influence them."
Tourism Holdings' independent directors have recommended accepting the $2.80 a share takeover offer as the most value-creating option available to shareholders.
An independent adviser's report by Ferrier Hodgson said the offer was within a valuation range of $2.67 and $3.07 a share.
Tourism Holdings shares closed down 1c yesterday at $2.69.
On the table
* Australian firm MFS Living and Leisure offers $2.80 a share.
* The offer is conditional on 90 per cent acceptance.
* Acceptances today will take MFS to 58.52 per cent.
* Offer closes on Saturday.
