A US group has increased its stake in Tourism Holdings - which owns Kelly Tarlton's - to 17 per cent. Photo / Brett Phibbs
Its intentions remain unclear but a group of US investment funds has pushed its stake in Kelly Tarlton's owner Tourism Holdings closer to the threshold for a formal takeover.
The group - listed as Drake Associates, Sterling Grace Capital Management, Cabin Interiors and Aviation Services - has increased
its holding in the NZX-listed company from 15.9 per cent to 17 per cent.
The share price of Tourism Holdings yesterday continued this month's steady climb, closing up 6c at $2.26.
First NZ Capital analyst Jason Familton said a takeover was possible.
"There's definitely a potential there," Familton said. "When a shareholder slowly climbs to 17 per cent, obviously they're getting quite close to 20 and obviously they still see there's value in the stock as well."
Investors wanting to raise their stake in NZX-listed companies above 20 per cent must make either a full or partial takeover bid or get shareholder approval from the target company for an allotment of new securities or to buy existing shares.
Most people were aware of the US interest but a question still remained about the ultimate game plan, Familton said.
Sterling Grace Corporation - which has the same postal address as that listed on the substantial shareholder notice - says on its website that it specialises in identifying undervalued situations in the United States, Australia, Europe and emerging markets.
Peter Metz, Sterling Grace & Company senior vice-president, could not be reached for comment but has declined the opportunity in the past.
