Shareholders approve Tourism Holdings $69.5m camper merger
Tourism Holdings' shareholders have overwhelmingly approved a $69.5 million merger with rivals United Campervans and Kea Campers.
The deal to grow THL's market share in a cash and scrip offer was put to the vote at a special meeting of shareholders in Auckland this afternoon.
Although the company had announced the conditional agreement to buy the business and assets of its rival motorhome rental companies last month, the deal needed majority shareholder approval to get over the line.
About 100 shareholders who attended the meeting at the Stamford Plaza were overwhelmingly in favour of the deal. No one voted against it.
Votes received by proxy were more than 95% in favour of the merger.
The deal will lift Tourism Holdings' (THL) market share of the rental campervan market to 45% from its current 27%.
Voters also approved a resolution to appoint United Campervan director Kay Howe to the THL board.
Shareholders were told the projected value accuring to shareholders from the merger was estimated at $32 million, or 33 cents per share.
The transaction is forecast to booste revenue to $241.3 million in 2014 - up from the $200 million earned this year, with profit more than tripling to $14.8 million.
Chairman Keith Smith said THL's earnings from the New Zealad campervan market were currently low.
"It's the logical and best response to the challenges facing the New Zealand campervan market."
Shares in THL are trading at 74c on the NZX, having risen more than 30% since the merger was announced.
The company is issuing fully-paid ordinary shares in THL to United and Kea in part payment for the acquisition.
This includes 6.4 million ordinary shares to United for 0.19c for a total consideration of just under $4 million and 5.6 million ordinary shares to Kea for $0.619 a share for a total consideration of $3.5 million.
THL will loan money to Kea as part of the transaction.
The transaction was endorsed in an independent report by Cameron Partners.