Latest news with #BGH
NZ Herald
03-08-2025
- Business
- NZ Herald
Tourism Holdings rejects $2.30 per share takeover bid as undervalued
'The board acknowledges that its view on valuation is materially above the last trading price for THL prior to receipt of the BGH proposal,' the company said. 'The board also accepts that there is an inherent risk in execution of THL's growth roadmap and global economic factors which may affect THL's future outlook.' THL's board said that the current proposal was 'well below' a level it could engage with based on the value of currently underperforming parts of the group, even allowing for significant downsides. It rejected the consortium's offer, but said it remained open to engagement with the group or other potential bidders if a significantly improved offer is provided. BGH has acquired a relevant interest in 19.99% or 44,197,503 of THL's shares. THL also provided an update on its 2025 full-year underlying net profit, which it said would remain in line with its announcement from July 4, with net profit expected to come in at the lower end of the analyst range of $27.0 million to $34.4m. In its interim six-month result to December 31, 2024, the firm reported a statutory net profit after tax (npat) of $25.3m, down 36% or $13.2m on the prior corresponding period. However, total sales grew, with revenue increasing to $458.3m in 1H25, up from $449.1m in 1H24. Growth roadmap With the rejection of the consortium's offer, THL released a presentation detailing what it believes will help drive growth over the coming years. THL chair Cathy Quinn said the recent developments within the company's planning process, and the assessment of the offer, made it the right time to present THL's roadmap. 'The board is unanimous in its belief that THL has now passed an inflection point in terms of performance and, over the next few years, expects rental revenue to grow significantly, debt to reduce significantly, and its near-term cost reduction plan to be successfully implemented,' Quinn said. The presentation outlined a number of initiatives that THL has been working on, including a strategic review of the UK and Ireland division, and the acceleration of THL's North American synergy project. THL is taking steps to address a gap between its manufacturing costs in New Zealand and Australia, where on certain models THL manufactures for 20% less in New Zealand after allowing for shipping costs to Australia. The company also planned to reduce capital employed and improve profitability in the Australian retail sales division through overhead and inventory reduction and a rationalisation of products and brands. THL said the growth drivers and strategic initiatives position the company to achieve its goal of $100m in net profit after tax over the next three to four years. However, the company has made a number of key assumptions to achieving that goal, including its fleet reaching 9000 vehicles by June 2028, and debt reduction of over $100m. THL also outlined some key risks to achieving the goal, including tariffs, an extended economic downturn, and technology risks because of the business' reliance on internal combustion engines. The company intends to release its financial results and annual report for the 12 months ending June 30, 2025 on August 25. Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
RNZ News
03-08-2025
- Business
- RNZ News
Tourism Holdings rejects Australian takeover bid
Tourism Holdings said its full-year net profit for the year ended June was expected to be a loss. Photo: 123RF Campervan firm Tourism Holdings (THL) has rejected what it is calling an opportunistic takeover offer for the company. In a statement to the market, THL said its share price prior to the BGH proposal reflected a bottom-of-the-cycle trading environment, and the value of the company was well north of $3 per share, compared with the offer of $2.30 a share . "The board also accepts that there is an inherent risk in execution of THL's growth roadmap and global economic factors which may affect THL's future outlook ," it said. The company said its full-year net profit for the year ended June was expected to be a loss given the potential for a writedown of $36 million in the value of its United States' goodwill, in addition to potential deferred tax write-offs in the US and Britain of up to $21m and other non-cash one-off items. The underlying profit was also expected to be at the lower end of market analysts' expectations, in a range of $27m to $34.4m. However, the company said it had a roadmap for growth and believed it could achieve its goal of making a $100m net profit over the next three to four years. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
News.com.au
16-05-2025
- Business
- News.com.au
Criterion: As the travel sector loses altitude, acquirers fly in for the kill
Recent sector downgrades highlight consumer concerns about tariffs and cost of living pressures Webjet Group's depressed valuation has attracted a private equity bidder with a lowball offer Despite the pressures, the key travel stocks are better placed financially than in previous downturns Like a rapidly fading post-holiday suntan, the post-pandemic travel boom has been abruptly curtailed. Tariff and cost-of-living concerns have crimped travel budgets, while there's evidence that haphazard US customs policies are deterring visitors there. As sure as night follows day – although not necessarily on an overseas flight – acquirers are sniffing out unloved stocks. This week, private equity group BGH lobbed a non-binding for flight booking portal Webjet Group (ASX:WJL) which demerged from its business-to-business hotel arm Web Travel Group (ASX:WEB) last October. BGH's offer came after the group built a 10.76% relevant stake in Webjet. On a nostalgic note, that was with the help of 1980s corporate raiders Ariadne Australia and Gary Weiss. Adding to the intrigue, Helloworld Travel (ASX:HLO) has accrued a surprise 5% Webjet Group stake. In the meantime, the out-of-sorts Kelsian Group (ASX:KLS) is in the process of selling its legacy Kangaroo Island ferry business and other tourism assets, in favour of focusing on commuter transport. Losing altitude The corporate manoeverings come amid earnings downgrades from the key operators. Early this month, Flight Centre cited 'short term results volatility brought about by uncertain (cyclical) trading conditions, including the recent changes to US trade and entry policies.' Things were going OK until March, when US 'policy changes' started to impact both corporate and leisure sales. Corporate Travel Management (ASX:CTD) then said full year revenue was likely to be 4% softer than forecast, with underlying earnings likely to be down $30 million relative to expectations at the half year results. The company cites 'broad economic and tariff uncertainty in North America and Asiahas led to reductions in client activity resulting in slower growth than expected during what is traditionally the busiest period of the year.' Helloworld last week trimmed its full year guidance to underlying earnings of $52-56 million, down from the previously indicated $56-62 million. Helloworld's outbound US bookings are only marginally down, while there's strong demand for premium seats across the board. Not everyone is sharing the cost-of-living pain, evidently. Tapering airfares tell the story According to UBS, as of March domestic airfares had fallen an average 9%, reversing the momentum of 2024. International fares fell an average 4%, or 11% in the case of Virgin. At face value, cheaper airfares are positive for demand, but not if folk are unwilling to travel because of geopolitical and economies uncertainties. The trends suggest that travellers are eschewing long-haul trips, in favour of destinations such as Bali, Fiji, Hawaii and Japan. This is consistent with cost-of-living pressures as well as reports of chronic overtourism in favourite European spots. Merger mania If last year's Webjet bifurcation was aimed at making the businesses easier to take over, it has succeeded in its objective. While BGH's 80-cents-per-share tilt was at a 40% premium to Webjet's 'undisturbed' share price, the stock has traded above that level. RBC Capital markets notes Webjet has $100 million of net cash worth 26.7 cents a share – one-third of BGH's offer price of 80 cents per share. The firm opines that even without a takeover premium, Webjet shares are worth $1.05 to $1.30 a share. With a suitable control premium, the board would start talking turkey at $1.26 to $1.50 a share. Not even close! Don't panic, we're not going down The downturn doesn't mean that that travel stocks should be avoided. On the contrary, they tend to overreact to both good and bad conditions. Insofar as Australians are more likely to take a domestic break, the conditions are amenable to local plays such as Experience Co (ASX:EXP), which runs skydiving venues and tree walks. Experience Co this week reported soggy trading because of soggy weather, but notes an 'opportunity to capitalise on sentiment generated by recent US tariff changes'. Helloworld benefits from the enduring strength of cruising, with bookings expected to be 40% higher this year. Like a tired hotel room, there's room for a lick of paint. As part of a much-needed 'brand refresh', Webjet Group plans to double its ticket turnover to $3.2 billion by 2030, including a push into hotel and package offerings. The players are more resilient financially than during the 2007 GFC, or pandemic. In the early days of the plague, Flight Centre executed a $700 million emergency capital raising. Now the company is buying back $200 million of its own shares. There's no need to assume the brace position - but expect some more turbulence and keep the seat belt buckled just in case.
Yahoo
18-03-2025
- Business
- Yahoo
Germany's top court to rule on Apple's market dominance
Germany's Federal Court of Justice (BGH) is set to rule on whether Apple holds outstanding significance across markets on Tuesday, a classification that could subject the company to stricter competition control. The US company is contesting a decision by Germany's Federal Cartel Office that it had an "noteworthy, cross-market significance for competition" in 2023. If the Karlsruhe-based court upholds the competition regulator's assessment, Apple would face stricter monitoring for market abuse. The BGH is ruling on Apple's appeal as the first and only instance in the case. Since a change in the law in 2021, the German regulator has been able to take action more easily against large digital companies. The process consists of two steps. First, the authority determines whether a company holds significant influence across markets, regardless of a specific violation. If that is confirmed, it can then prohibit practices it considers harmful to competition. Sign in to access your portfolio
Yahoo
21-02-2025
- General
- Yahoo
What is a hedge? Neighbourly dispute occupies German high court
A dispute between two German neighbours over the height of a bamboo hedge occupied the German Federal Court of Justice (BGH) on Friday. Two neighbouring property owners in the western German state of Hesse have been locked in a dispute about the hedge. First planted in 2018, the bamboo has since reached a height of 6 metres. The plaintiff in the case is demanding that his neighbour trim her hedge below 3 metres in height, even though it currently complies with all rules laid out in local law, which require that hedges over 2 metres in height must be set back at least 0.75 metres from neighbouring property. At the heart of the case is the existential question: What is a hedge? That's because stricter distance rules apply to trees and shrubs, raising a fundamental question about the nature of the garden bamboo. The plaintiff argued that a hedge is characterized by the fact that it is maintained and regularly trimmed - so if it exceeded a certain height, it could therefore no longer be considered a hedge. The defendant's side, on the other hand, did not consider the height of the hedge to be the determining factor, but emphasized the many advantages the bamboo hedge offers. It was a "living element of horticulture" and also offered ecological value, the woman's lawyers contended. Whether the hedge is a source of pleasure or a nuisance is "a matter of perspective," Peter Wassermann, the plaintiff's lawyer, retorted after the hearing. For his client, the hedge was an inconvenience, he said, adding that the plaintiff's view is blocked by a bamboo wall when looking out the window. "When it rains or snows, the precipitation weighs additionally on the leaves, causing the bamboo plants to bend over onto his property," Wassermann said, adding that the bamboo made the man feel "stifled." If the woman must cut back her hedge, the judges are also being asked to decide the proper height, since the man's property is lower than his neighbour's. He wants the height of the hedge to be measured from the lower elevation on his side of the property line. A decision from the BGH is expected on March 28.
