The NZPA reported that Ballylinch LP, a company associated with Switzerland-based businessman John Sheffield Grace, Monday dispatched its partial takeover bid for Tourism Holdings Ltd (THL), a leader in the crucial New Zealand tourism industry.

However, Ballylinch said it won’t lift its bid to buy the controlling stake in Tourism Holdings. According to Stuff New Zealand, the 67.5 cents a share bid is now a discount of 8.8%, with Tourism Holdings recently trading at 74 cents. When the bid was made last month, Ballylinch’s offer was at a premium of 13%.

In a letter to investors, Ballylinch urged them to consider accepting the offer, arguing there is no guarantee that, should the offer be unsuccessful, the share price will remain at current levels. Ballylinch has a 19% stake in Tourism Holdings and wants another 40.85%, which is conditional on winning more than half the company’s shares, said Stuff.

According to NZPA, Ballylinch said Northington Partners Ltd has certified that the offer is fair and reasonable as between the ordinary shares and the redeemable shares. A copy of the Northington Partners report will be sent along with the target company statement that THL is required to prepare in response to this offer.

Mr Grace is the sole director of the Ballylinch general partner, which is owned by Scanhard Trustee Co, which is in turn owned by John Orton and Jonathan Heaphy of Havelock North. Mr Grace is based in Switzerland but is a New Zealand citizen, said NZPA.

Grace is associated with US-based investment firm Sterling Grace, which owns Trustee Executors in New Zealand. That business was purchased from Tower, said Stuff New Zealand.
Ballylinch reiterated that it does not currently intend to make any material changes in respect of the business activities of THL or its subsidiaries or the composition of the board, but it reserves its right to do so.

It is Ballylinch’s current intention that if this offer is successful THL will remain New Zealand-based and listed on the NZSX, the investment vehicle said.

However, analysts believe the offer is below asset backing but the company has underperformed. According to NZPA, institutional investors, including ACC, with a 7.2 percent stake, and Tower Investments, with just under 5 percent, will be key to the outcome of this corporate play.