Interests associated with the Cushing family have sold their 10.02 per cent stake in Tourism Holdings to Australia's MFS Living and Leisure Group.
THL director David Cushing signalled the sale late last month when he said he was recommending holders of his family's stake sell into MFS' takeover
offer.
The stake had the potential to block a full takeover. Two other major shareholders can still block the bid -- US investment fund Sterling Grace Capital Management holds a 16.96 per cent stake, and AXA holds 12.2 per cent.
THL directors have recommended the MFS offer, although Mr Cushing abstained from the board recommendation because of a possible conflict of interest.
The full takeover bid from MFS is a cash offer of $2.80 a share, valuing Tourism Holdings at $277 million.
The sale by the Cushing family of its stake was unconditional at the current market price of $2.76 cash per share, MFS said today.
Family member Sir Selwyn Cushing said the acceptance reflected the fact that Tourism Holdings operated in an industry not without risk.
"We believe the takeover offer by MFS Living and Leisure represents an excellent opportunity for all shareholders to sell their shares for a very fair price," he said.
Among factors taken into account by the Cushings was the long term earnings volatility of Tourism Holdings and its susceptibility to tourism shocks.
Another was the significant premium of the MFS offer over the Tourism Holdings price of $2.27 before the offer was announced.
- NZPA
