THL Receives Revised NZ$3.10 Acquisition Offer and Lowers FY26 Profit Forecast

BGH Consortium Raises Acquisition Offer to NZ$3.10 Per Share

Tourism Holdings Limited (NZX:THL, ASX:THL) has received a fresh acquisition overture from a consortium led by BGH Capital alongside the Trouchet family interests. The revised non-binding indication of interest values THL at NZ$3.10 per share in an all-cash deal, a notable premium that could reshape shareholder returns if it progresses.

The consortium currently holds roughly 19.9% of THL shares and has set several conditions before advancing to a binding offer. These include satisfactory due diligence, final debt arrangements, and investment committee approval from BGH. Crucially, the THL board must unanimously recommend acceptance absent a superior proposal, supported by an independent adviser confirming the offer falls within or above valuation ranges.

Shareholders representing about 16% of the company have expressed support for THL engaging with the consortium and granting due diligence access. The offer will lapse if no response is given by 12 June 2026, leaving the board with a tight window to assess the proposal’s merits amid uncertain market conditions.

THL Lowers FY26 Profit Guidance Amid Global Travel Challenges

In tandem with the acquisition news, THL updated its FY26 earnings outlook, trimming underlying net profit after tax (uNPAT) guidance to NZ$40-43 million from an earlier forecast of NZ$43-47 million. The revision reflects ongoing disruptions in international travel, softer consumer confidence, and geopolitical tensions, notably the Middle East conflict affecting vehicle sales and rental demand.

Net debt is now expected to rise to NZ$460-470 million by 30 June 2026, up from a previous forecast below NZ$400 million. This increase stems from lower vehicle sales volumes, adverse foreign exchange impacts of around NZ$10 million, and working capital pressures including extended inventory release following the Australian manufacturing closure.

Despite these headwinds, THL maintains a robust balance sheet with over NZ$300 million in debt facility headroom and remains comfortably within banking covenants. The company plans to moderate vehicle purchases to unwind the elevated net debt position progressively.

Strategic Shifts and Market Sentiment

THL has continued to streamline its operations, divesting its UK & Ireland business and consolidating Australian manufacturing into New Zealand to capture scale efficiencies. The Australian retail segment has improved working capital and closed underperforming sites, while the North American business still lags return expectations, prompting exploration of value-enhancing options.

Looking ahead, THL remains cautiously optimistic about the medium-term outlook for rentals and tourism. Canada stands out with expectations of a record summer, while New Zealand and Australia’s recovery hinges on easing air capacity constraints and flight pricing. Forward bookings in the US show improvement, but uncertainty persists regarding the pace of growth into calendar 2027.

The September to October booking window is critical for shaping the upcoming summer season. Prolonged geopolitical tensions could further dampen demand, particularly in New Zealand and Australia.