THL - Tourism Holdings

**Balance** · 31-10-2017, 11:21 AM

https://www.nzx.com/announcements/309497

Interesting to note that Milford has been the biggest seller of THL - now down to 5.5%.

They were sitting on 19.14% in 2014!

Milford started selling down in 2015.

With THL at an all time high, Milford has certainly been very generous to the buyers by leaving plenty on the table! Something like $75m based upon a simple calculation!

**dumbfounded** · 31-10-2017, 11:51 AM

Originally Posted by Balance

https://www.nzx.com/announcements/309497

Interesting to note that Milford has been the biggest seller of THL - now down to 5.5%.

They were sitting on 19.14% in 2014!

Milford started selling down in 2015.

With THL at an all time high, Milford has certainly been very generous to the buyers by leaving plenty on the table! Something like $75m based upon a simple calculation!

I went to their annual meeting at the beginning of this year and asked them why they are selling THL. The answer I got is that they fear that there is no barrier to entry for their kind of businesses and hence, they are selling down to balance their portfolio. They liked ATM then. I guess you can't win them all.

**forest** · 31-10-2017, 12:14 PM

Transactions made during the period 02 October 2017 – 27 October 2017. Sales of 1,650,000 ordinary shares, for total consideration of $8,002,500. Purchases of 429,264, for total consideration of $2,031,541.12.

What I find interesting that Milford has sold down mainly but also purchased 429,264 shares according to the notice.

Just wondering if it is possible to tell in which order the transactions has been made? Did they buy first and than sell or the other way around?

Balance do you know, or others? Cheers.

**Arbroath** · 31-10-2017, 12:32 PM

Originally Posted by forest

Transactions made during the period 02 October 2017 – 27 October 2017. Sales of 1,650,000 ordinary shares, for total consideration of $8,002,500. Purchases of 429,264, for total consideration of $2,031,541.12.

What I find interesting that Milford has sold down mainly but also purchased 429,264 shares according to the notice.

Just wondering if it is possible to tell in which order the transactions has been made? Did they buy first and than sell or the other way around?

Balance do you know, or others? Cheers.

The answer is in the average prices - they bought first c. $4.73 average some of which might be related to the DRP and sold the block at $4.85 to the Chinese.

**forest** · 31-10-2017, 12:35 PM

Thanks Arbroath.

**arc** · 31-10-2017, 01:18 PM

Originally Posted by Arbroath

The answer is in the average prices - they bought first c. $4.73 average some of which might be related to the DRP and sold the block at $4.85 to the Chinese.

473/485 roughly 2.47% increase, a good margin for investment.
Question is will they now be tempted to unload the rest on market for a "larger" margin, or hold till a possible announcement of takeover is made (with possible forced escalation in base price).

Edit: Im also noticing that robot trading software may actually work to the advanatge of large buyers, as robots make multiple small buys, sell as a larger combined packet, but do it all between 1.5-3% gain. They also sell down if statistics imply negative trends.

Someone is actively feeding this trend..?

**Beagle** · 01-11-2017, 10:18 AM

Those quick to put their paws up for more recently look to be very positioned. Tens of millions of dollars of new money flows into the market every single month from Kiwisaver contributions...wonder where some of that will flow this month and if Milford are silly enough to keep selling or might shut up shop for a while ? Wonder where this is by Christmas ?

**arc** · 02-11-2017, 11:20 AM

So what happens when the offshore buyers attain enough volume to force the issue. Are they actually required to finish the acquisition process by making an offer to holders at the present market levels, or can they offer 1/2 price to the last holders as they are now in a position of power ?.

**mondograss** · 02-11-2017, 11:25 AM

No, it's usually at the same price as they've offered other share holders, or an independently determined price:
http://www.takeovers.govt.nz/assets/...t-linked2a.pdf

But they have to get to 90% to do a compulsory acquisition. When\If they get to 20% then they basically have to show their hand in order to keep buying.