Johnston's is now under new management.
Tourism Holdings is selling two-thirds of charter firm Johnston's Coachlines into a joint venture and is eyeing other sale and acquisition options.
The controlling stake will be taken by investment group Coach Investments and Tourism Holdings will retain a one-third stake. The deal will free up $11 million
for the company.
Chief executive Trevor Hall said the joint venture had been part of an earlier plan put on hold during the recent failed takeover bid for Tourism Holdings by Australian firm MFS Living and Leisure.
"It's no secret that it hasn't been the best performer for us and a lot of that we put down to we just haven't been able to get good management capability into that business," Hall said.
"By working with this Coach Investments we've been able to bring together parties that have got very deep experience in operating heavy chassis diesel vehicles."
Philip Manning, a member of the Coach Investments group, has become Johnston's managing director.
The focus of Johnston's - which runs about 65 coaches on a mixture of lease and an owner-driver basis - would broaden from the seasonal tourism market into the wider road transport arena, Hall said.
Chairman Keith Smith said the move should not be seen as part of a larger restructure.
However, the board was examining a range of proposals that had surfaced since the takeover bid by MFS Living.
"This includes expressions of interest in purchasing assets from [Tourism Holdings], and also proposals that would see the group increase in size by purchasing or merging with other businesses," Smith said.
Hall said neither the names of interested parties nor the details of potential deals could be confirmed at this stage.
Shares closed yesterday steady at $2.40 - less than the failed MFS Living takeover offer of $2.80 but higher than pre-bid levels.
Regarding the Johnston's joint venture, Hall said: "We started this process in October last year to narrow the focus of the company down with very strong growth plans," he said.
"That hasn't changed."
