Tourism Holdings and Australian firm agree asset sale to progress merger

Campervan and tourism company Tourism Holdings (THL) and Australian operator Apollo Tourism & Leisure (ATL) have agreed to sell some assets to get a merger over the line.

The proposed takeover of Apollo by THL prompted regulators on both sides of the Tasman to raise concerns, with New Zealand's Commerce Commission worried it would dent competition.

The Australian Competition and Consumer Commission (ACCC) voiced similar concerns to their New Zealand counterpart on the merger, which was first proposed in December last year.

THL announced to the stock exchange on Friday morning both companies had agreed to sell certain ATL assets to a subsidiary of the Jucy Group for $45 million, in a bid to get the merger over the line.

It includes 310 motorhomes from ATL's New Zealand and Australian rental fleets, a proportion of the forward bookings, ATL's 'Star RV' motorhome brand, and the property leases for surplus depots.

The merged entity would supply 40 motorhomes to Jucy in 2023 in each of Australian and New Zealand markets, with the option to supply more in 2024, and would introduce Jucy to wholesalers who market the Star RV brand but do not have a relationship with the company.

"The divestment to Jucy remains subject to confirmation from the New Zealand Commerce Commission and the Australian Consumer and Competition Commission that it is satisfactory as part of their respective clearance reviews of THL's proposed merger with ATL, and clearance being provided on that basis," THL said in a stock market announcement.

New Zealand and Australia's competition watchdogs were expected to announce their decisions on Friday 23 September and Thursday 29 September, respectively.

If approved, THL said the asset sale to Jucy would be completed prior to the completion of its merger with ATL.

The merger would be subject to refinancing conditions being met, regulatory approval and support from ATL shareholders.