THL - Tourism Holdings

[Southern Lad]

The AFR Street Talk column today is evidently suggesting that bankers have been promoting to buyout firms that there is a play to be had through buying out and merging THL and ATL. See post on HC under ATL for details.

While combining the two companies would provide plenty of scope for rationalisation of infrastructure and perhaps fleet sizes, I’m assuming it would be a hard sell to get past regulators given the market dominance of a merged company in both NZ and Aus.

[bull....]

The AFR Street Talk column today is evidently suggesting that bankers have been promoting to buyout firms that there is a play to be had through buying out and merging THL and ATL. See post on HC under ATL for details.

While combining the two companies would provide plenty of scope for rationalisation of infrastructure and perhaps fleet sizes, I’m assuming it would be a hard sell to get past regulators given the market dominance of a merged company in both NZ and Aus.

3 bagger on the way , atl be a cheap buy for thl now

[percy]

3 bagger on the way , atl be a cheap buy for thl now

Be very careful as they would inherit ATL's mountain [mountains] load of debt [debts].

[Scrunch]

The AFR Street Talk column today is evidently suggesting that bankers have been promoting to buyout firms that there is a play to be had through buying out and merging THL and ATL. See post on HC under ATL for details.

While combining the two companies would provide plenty of scope for rationalisation of infrastructure and perhaps fleet sizes, I’m assuming it would be a hard sell to get past regulators given the market dominance of a merged company in both NZ and Aus.

I'd put this into the pump and category and guess that someone raising the possibility already has a position that they are ready to dump. THL has been exploring potential acquistion targets in the past so its inconceivable that they haven't taken a good look at the idea of an equity raise and buying out ATL. That THL haven't indicates the synergies are probably not there, there is a big regulatory hurdle or the scale of the equity raise for acquisition and recapitalisation is too big. Whether you could keep ATL's debt levels or need to chuck in a lot of new equity to bring them down would depend on ATL's financing terms. While ATL is trading at 36c, its net debt/share was $1.92 at the end of December. The book value/share (70c) makes the share price look cheap, but not so much when you look at NTA/share which is negative $1.27.

[Mr Slothbear]

https://www.stuff.co.nz/business/121...-restructuring


hmm very interesting. Two execs gone and one having only been there 12 months.

disagreements with management? Or cost cutting?

[Beagle]

Not often you get the CFO and COO resigning at the same time, especially when one has only been there for just over a year.
My money would be on a conflict with the CFO's leadership style. Some people are no good in a crisis.

[percy]

I would think nearly every CFO,COO,CEO and directors of listed companies, would find the current crisis, and ongoing issues of right sizing their business,with the right amount of capital, would be causing them a great deal of worry and stress,particularly when they do not really know what the right size will be for their business..Putting off staff is extremely difficult.
Serious issues with most businesses are going to be ongoing, for the next two or three years.Next winter is going to be very cold and long.Just too many people currently losing their jobs.

[winner69]

Making a few million profit in second half pretty good effort by Thl

https://www.nzx.com/announcements/355247

[Scrunch]

Making a few million profit in second half pretty good effort by Thl

https://www.nzx.com/announcements/355247

So the half year was $13.1m and the full-year underlying estimate is $17.5m to $19m. There will be some write-off's but even so - well done.
The half year had $5.7m of cash and interest bearing borrowing of $186.7m. The net debt estimate is $140-$145m so they repaid circa $40m over the last 6 months.
These are pretty good stats given the circumstances.
And probably most important "Given these funding arrangements and the current outlook for the business, thl has determined that it does not require additional equity."

While the announcement of no final dividend could be viewed negatively, who really thought there would be a final dividend given what's happened in the last four months?

[Lease]

So the half year was $13.1m and the full-year underlying estimate is $17.5m to $19m. There will be some write-off's but even so - well done.
The half year had $5.7m of cash and interest bearing borrowing of $186.7m. The net debt estimate is $140-$145m so they repaid circa $40m over the last 6 months.
These are pretty good stats given the circumstances.
And probably most important "Given these funding arrangements and the current outlook for the business, thl has determined that it does not require additional equity."

While the announcement of no final dividend could be viewed negatively, who really thought there would be a final dividend given what's happened in the last four months?

Definitely, we should not write THL off. It's a great company!