Chinese investment manager Citic Capital, which oversees US$21 billion (NZ$30.5b) of assets, has boosted its stake in Tourism Holdings to almost 11 per cent having emerged as a substantial shareholder in the motorhome operator earlier this month.
The investor bought 4.2 million shares for an aggregate $20.4m in a series of on-market purchases between October 16 and October 27, representing an average price of $4.85 a share, according to a substantial shareholder notice to the NZX. Citic unit HB Holdings emerged on the register as a substantial investor on October 18 with a 7.3 per cent holding, paying an average price of about $4.82 a share for the stake then participating in the dividend reinvestment programme.
Tourism Holdings chair Rob Campbell noted the increased holding and said in a statement the company's "strongly articulated global strategy" is being rolled out and that there's no reason for that to change.
"We believe there is further upside in our business and ability to grow value to our shareholders," he said. "We are hopeful New Zealand and other investors will continue to support our business and growth strategy."
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Citic's HB is Tourism Holding's biggest shareholder with local fund manager Milford Asset Management reducing its stake to 6.5 per cent as at October 2 from about 11 per cent in June.
The shares last traded at $4.92 and have gained 33 per cent so far this year, outpacing a 17 percent increase on the S&P/NZX 50 index over the same period. The stock is rated an average 'hold' based on three analyst recommendations compiled by Reuters, with a median target price of $4.58.