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On a day when the energy sector has soared +6% as crude oil prices hit COVID-era volatility, it’s perhaps surprising that the ASX’s top gainer (after around an hour of trade) isn’t even an energy stock.
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Instead, we’ve got a company with a core value prop of RV rental, Tourism Holdings Rentals (ASX:THL), soaring to the top of the board.
Beyond the fact that RVs use fuel, that’s got nothing to do with energy.
But it does have to do with a takeover, on a day where the local bourse has already been defined by one other large takeover deal; Santos and ADNOC.
So, who’s coming after THL? The dual-listed stock (it’s also on the NZX) has received a bid from a consortium combining BGH Capital and “the family interests of Luke and Karl Trouchet” for NZ$2.30/sh – implying an AUD price of $2.14/sh.
There is one interesting thing to note, here.
“Given Luke Trouchet’s involvement in the consortium with BGH, Luke has taken a leave of absence from his executive role with [Tourism Holdings Rental],” THL wrote on Monday. Make of that what you will.
At any rate, after jumping +50% in Monday trades, the share price has come close to $2.04/sh, suggesting a majority of investors see the deal as good news.
As I recently discussed on the latest HotCopper podcast, mergers and acquisitions are usually stories of hunter and prey, and we can see that playing out in THL’s disclosure commentary on Monday.
Because the company confirmed just that.
“Board and management are very aware of THL’s recent performance, which has been largely influenced by factors beyond the company’s control,” the company wrote.
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“Such as the impact of poor consumer confidence on the demand for recreational vehicles, and recent geopolitical and tariff developments impacting travel sentiment.”
It could make one wonder why, then, the company is the target of a non-binding offer. But for now, most shareholders clearly don’t care.
THL last traded at $2.04/sh.
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