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Highlights
- NZCC grants clearance to THL to merge with Apollo
- The clearance came after an undertaking to divest some ATL assets in NZ
- As per the company, the transaction is likely to be completed by year-end
Tourism Holdings Corporation (NZX:THL) was in news today as the New Zealand Commerce Commission (NZCC) granted clearance to the Company to merge with Apollo
Tourism & Leisure Limited (ATL). According to the company release, the clearance came after an undertaking was given by THL and ATL that they would divest some ATL assets in NZ.
According to the Company, this would be in line with the terms of the agreement entered into with JUCY on 22 September 2022. JUCY is an NZ-based travel and tourism company dealing primarily in the car and campervan hire business. It also operates cruises in Milford Sound and Snoozes in Auckland Central, Queenstown, and Christchurch.
According to the Commerce Commission of NZ, the sale of assets is necessary for addressing some competition concerns.
However, the divestment is still under review by the Australian Competition and Consumer Commission (ACCC. The ACCC is expected to give its decision on Thursday 29 September 2022.
According to Grant Webster, CEO of THL, this is an important step towards the successful merger of the two companies. While the company is focused on satisfying some other conditions, the transaction is likely to be completed by the end of this year, he said.
However, the merger remains subject to approval from the Australian Foreign Investment Review Board and ATL shareholders.
Proposed divestment to JUCY
THL and ATL also entered into an agreement to sell assets to a wholly owned subsidiary of JUCY Group Limited for an indicative purchase price of approximately NZ$45 million.
The New Zealand assets to divest
The company has decided to divest assets like
- Four– six berth motorhomes from ATL’s rental fleet in New Zealand and 200 four– six berth motorhomes from ATL’s rental fleet in Australia, including a proportion of the forward bookings associated with that fleet;
- ATL’s Star RV motorhomes brand
Bottom Line: The merger between New Zealand-based THL and ATL has made a forward movement with NZCC approving it. The merger is likely to be completed by the end of the year. This merger is likely to give the companies an advantage in Australia as well.