KEY POINTS:
The attempted takeover of Tourism Holdings by MFS Living and Leisure has failed but the managers and directors who recommended the deal are standing by their endorsement.
The $2.80 offer closed on Saturday with a final count of 83.01 per cent and MFS Living choosing not to waive
a 90 per cent acceptance condition.
Tourism Holdings' board - whose independent directors unanimously recommended shareholders accept the deal as the most value creating option - will meet next month to reset the strategy for the company.
Chief executive Trevor Hall said directors and managers would not "back away" from accepting and endorsing the price.
The independent adviser's report said the $2.80 offer was within a valuation range of between $2.67 and $3.07 a share.
"I was appointed to the company when it was $1.50 [a share], an offer came at $2.80, you know, I'll definitely think about my position but I don't think the shareholders have any concern that I haven't created value in the company," Hall said.
A strategy had been set in October to narrow the focus of Tourism Holdings and subsequently MFS Living emerged as a potential buyer for the leisure assets, including Kelly Tarlton's.
The asset sale interest from MFS Living developed into the now failed full takeover bid.
"Obviously I'll be meeting with the board towards the end of August ... and we'll reset the strategy," Hall said.
Director Harry Price said the board would meet shortly to outline its plans.
"I don't think the board members need to resign when 83 per cent [of shareholders] said they wanted to accept it," Price said.
Tower Asset Management, which holds just under 3 per cent of the stock, did not sell. Paul Robertshawe, Tower portfolio manager for equities, said Tourism Holdings was worth more than was offered.
The share price closed down 20c yesterday at $2.50.
It would not be a surprise to see some retirements on the board but Tower would not be agitating for change, Robertshawe said.
MFS Living chief executive Marshall Vann said the failed takeover bid had cost more than A$1 million ($1.09 million) but he did not rule out trying again.
"You never say never," Vann said.
"But this process has taken an awful lot of our time and our money to do and you wonder if you were to do the same thing again will you convince another 7 per cent of people to do it [and] will you convince the 83 per cent who've already decided to accept once to accept again?"
MFS Living would hold a board meeting this week.
"[Tourism Holdings] was a really good fit but it's not the only opportunity out there," Vann said.
First NZ Capital analyst Jason Familton said the takeover might have succeeded given more time.
"I would have thought it'll trade at a reasonable discount to that $2.80 but it won't go back to anywhere near where it was pre-bid as yet."
