Tourism Holdings Rejects Takeover Bid, Eyes Future Growth

Tourism Holdings Limited (THL), a prominent campervan rental company, has firmly rejected a takeover bid from Australian private equity firm BGH Capital. The company characterized the offer as opportunistic, asserting that it undervalues THL’s potential. In an official statement, THL highlighted that its share price prior to the proposal reflected a “bottom-of-the-cycle trading environment,” asserting that the true value of the company exceeds $3 per share, significantly higher than BGH’s offer of $2.30 per share.

The board of THL acknowledged that there are inherent risks associated with executing the company’s growth strategy. These include various global economic factors that could influence THL’s future performance. The company anticipates a challenging financial year, expecting to report a net loss for the year ending June 30, 2023, partly due to a proposed writedown of $36 million in goodwill related to its operations in the United States. Furthermore, THL indicated potential deferred tax write-offs in both the US and the UK, which could reach up to $21 million, along with other non-cash one-off items.

Financial Outlook and Growth Plans

Despite the expected downturn, THL remains optimistic about its financial future. The company projected that its underlying profit for the fiscal year would fall within the lower range of market analysts’ expectations, estimated between $27 million and $34.4 million. Nevertheless, THL is committed to a roadmap aimed at achieving a net profit of $100 million within the next three to four years, signaling a robust long-term vision.

The rejection of the takeover bid and the accompanying financial challenges highlight THL’s strategic approach to navigating the current economic landscape. The company is focused on leveraging its growth roadmap to capitalize on future opportunities within the tourism sector.

In summary, THL’s response to the takeover offer reflects its confidence in the company’s intrinsic value and future potential. As it seeks to overcome short-term obstacles, THL aims to position itself for sustained growth in the rapidly evolving campervan rental market.