It isn't just Santos Ltd (ASX: STO) receiving a takeover approach on Monday.
Tourism Holdings Ltd (ASX: THL) shares are rocketing this morning after it received an offer of its own.
At the time of writing, the ASX stock is up 50% to $2.05.
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ASX stock rockets on takeover offer
This morning, Tourism Holdings revealed that it has received a conditional takeover proposal from a consortium led by private equity firm BGH Capital and the family interests of Luke and Karl Trouchet.
According to the release, the non-binding indicative proposal (NBIO) outlines a potential all-cash offer of NZ$2.30 per share, representing a 58% premium to its last traded price on the NZX of NZ$1.46.
The release notes that the offer could proceed either via a scheme of arrangement or takeover offer, and is subject to several conditions including due diligence, financing, and board recommendation.
Interestingly, the consortium has signalled that it is open to alternative structures. This includes those that would give it control without requiring 100% ownership.
What is Tourism Holdings?
Tourism Holdings is the largest commercial recreational vehicle (RV) rental operator in the world.
The ASX stock operates rental brands Maui, Britz, Apollo, Mighty, Hippie, Cheapa Campa, as well as a collection of manufacturing businesses, retail brands, retail dealerships, a travel technology business, and tourism attraction businesses.
BGH already holds a major stake
The market was also informed that BGH Capital has already taken a significant position in the ASX stock, securing a 19.99% relevant interest in the company. This includes direct share purchases and a cooperation agreement with the Trouchet family shareholders.
Share purchases were made from institutional investors including ANZ Group Holdings Ltd (ASX: ANZ) and WAM Capital Ltd (ASX: WAM), at prices ranging between NZ$2.25 and NZ$2.30 per share. Some of these agreements include top-up payments if a higher final transaction price is realised within the next year.
What's next?
The ASX stock has established a board subcommittee to evaluate the proposal.
Luke Trouchet, who is part of the consortium, has taken a leave of absence from his executive duties and will not be involved in the decision-making process related to the bid.
The board will now assess the proposal with the assistance of financial and legal advisers. However, it has warned that there's no certainty that it will lead to a completed transaction and has urged shareholders to take no action. It will continue to keep shareholders and the market informed of material developments.
