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Highlights:
- Apollo shared that it has received a thumbs up from NZCC on the proposed merger with Tourism Holdings Limited.
- The clearance is subject to divestment of ATL assets to Jucy.
- Share price of ATL marked significant gains today. The stock closed 27.18% strong on ASX.
Recreational vehicles rental and sales service provider, Apollo Tourism & Leisure Ltd (ASX:ATL) had requested a trading halt today (23 September 2022) morning amid a pending announcement. After the release of the announcement, ATL’s share price gained 27.184% to close at AU$0.655 per share on ASX today.
With this, in the past five trading sessions, the share price zoomed by 14%, and in six months, it increased by 15%. The share price grew 2.34% on a year-to-date basis, and the yearly gain is 15%.
Why did Apollo put shares on a trading halt?
ATL requested a trading halt as the announcement regarding the NZCC’s decision on the clearance application was pending about the proposed merger with Tourism Holdings Limited (NZX:THL).
What was the announcement?
Through ASX announcement, ATL shared that it has received clearance from NZCC for the proposed merger with THL. The clearance is subject to the condition that THL and ATL would divest ATL assets in New Zealand, as per the terms agreed with Jucy.
In addition to this, the regulatory body (NZCC) has confirmed that the sale of ATL assets is an acceptable remedy that answers the concerns raised by competitors.
An update on the merger with Tourism Holdings Limited
Today, via ASX announcement, ATL shared that it has entered into a Deed of Variation to introduce changes to the scheme of arrangement. Under the deed of variation, a change in the merger ratio is introduced. Now, one ordinary share of THL will be issued for 3.210987 ordinary shares of ATL as of the scheme record date. The revised merger ratio would lead to ATL shareholders having 27.5% and THL shareholders having circa 72.5% ownership in the merged entity.
Luke Trouchet, managing director, ATL, commented on the development:
Proposed divestment to Jucy
In an attempt to merge with Tourism Holdings Limited and gain all the necessary regulatory approvals, ATL and THL parties have entered into an arrangement with Jucy Group (2022) Limited to sell ATL assets to get approval from regulators.
The divestment to Jucy is subject to NZCC and ACCC (Australian Consumer and Competition Commission) confirmation that it satisfies their respective clearance reviews of the proposed merger with THL.
ATL expects that the sale of assets to Jucy will be completed before the execution of the proposed merger, as divestment is a condition which is required to be executed before the merger.
