BGH Seeks To Steer Tourism Holdings (THL NZ) Out Of A Rut

• Dual-Listed Tourism Holdings (THL NZ), the world's largest commercial recreation vehicle (RV) rental operator, announced this morning an unsolicited NBIO from a consortium comprising BGH Capital and the Trouchet family.

• The consortium is offering, by way of a Scheme, NZ$2.30/share. THL traded higher thirteen months ago, before announcing a significant profit warning in May sent shares down 36%.

• BGH, now holding 19.9% (including the Trouchet's family stake), is capitalising on a “sharp drop in interest for inbound travel to the US”, and "elevated cancellations of existing bookings".

Conclusions First:

• THL announced a significant profit downgrade on the 17th April, warning of a “sharp drop in interest for inbound travel to the US”, a slowdown in new bookings and "elevated cancellations of existing bookings".

  • Tourist are giving the US a wide birth as Trump’s targets immigration.

  • The US accounts for around a quarter of the THL's total sales.

• Interim results announced on the 25th Feb 2025 showed a 33% reduction in profit after tax.

• Further afield, THL announced on the 6th May 2024, it was reducing its profit guidance for the financial year from NZ$75mn to NZ$50–53mn, just three months after reaffirming the higher target.

  • That downgrade was attributed to a sharp slowdown in RV sales (both new and second-hand) due to deteriorating economic conditions in key markets, including New Zealand, Australia, and the US.

  • Shares tanked ~36%.

• THL acknowledges the challenges currently faced:

THL’s board and management are very aware of THL’s recent performance, which has been largely influenced by factors beyond the company’s control, such as the impact of poor consumer confidence on the demand for recreational vehicles, and recent geopolitical and tariff developments impacting travel sentiment

• BGH currently holds 19.9% of shares out, including 11.8% held by Luke and Karl Trouchet. Luke is an ED.

  • The other 8.2% was acquired - at a cost ofNZ$2.25-2.30/share - from Accident Compensation Corp, ANZ, and WAM.

  • ACC still holds 7.93%.

  • Still waiting on ANZ's revised shareholder announcement - they should still hold shares.