The tourism and campervan company Tourism Holdings Limited (thl) has entered into an agreement with an Australian company to sell two of its businesses.
File image. Photo: 123RF
Australian-listed Camplify Holdings had agreed to purchase thl's peer-to-peer motorhome businesses Mighway and SHAREaCAMPER for A$7.37 million (NZ $7.7m) through a share issue to thl.
The businesses allow private owners of RVs to rent their vehicles out to tourists.
The shares would be issued in two blocks, with the first tranche being offered at A$3.34 each (NZ $3.39) and the second tranche would be issued in 12 months time at either the lesser of the first issue price or Camplify's average share price over a 60-day period.
As part of the deal, thl would enter a commercial partnership with Camplify to provide its RV owners with managed services through its super centre network.
"This transaction ensures that thl maintains a presence in the peer-to-peer sector in New Zealand, and benefits from the scale that Camplify has achieved in Australia," thl chief executive Grant Webster said.
"We will be able to continue to leverage the benefits of the RV owner network for the thl RV super centre sales, service and retail businesses, while minimising the financial risks to thl."
The sale of the assets represents $6.3m in profit for thl.
"As a shareholder of Camplify we look forward to benefiting from the opportunities Camplify creates, which are different to the commercial owned-fleet model that thl operates globally, and delivering on the growth opportunities that exist for our RVSC business."
Camplify chief executive Justin Hales said he was excited about the new partnership and the opportunity the acquisitions would present.