In a bid to clear up confusion among shareholders, Tourism Holdings chairman Keith Smith has asked MFS Living & Leisure to confirm in writing by close of business today that it will not raise its takeover offer or alter its conditions.
Australian firm MFS has offered $2.80 a
share for Tourism Holdings in a takeover bid closing July 21, conditional on winning 90 per cent of the company so it can effect a full takeover.
MFS has so far won just 21.5 per cent of the company and has twice told shareholders the offer would not be varied - a stance Smith now wants MFS to confirm.
"We've had a couple of shareholders ask us to confirm that," he told the Business Herald.
"There's been some confusion as to whether MFS's statements vis a vis not moving it up and not changing the terms of the offer apply to the NZX or the ASX."
The distinction is important because under Australian rules, once an acquirer has said it would not increase or alter its takeover bid, that statement is legally binding.
However, in New Zealand, a bid can be altered even if the acquirer had indicated the contrary.
In a statement to both the NZX and ASX on June 27, MFS said it would not alter its bid, leading to the confusion.
In yesterday's letter to MFS, Smith says he wants Tourism Holdings shareholders to be "completely informed". He asks MFS to confirm it "will not in any circumstances" increase its offer or extend the final closing date.
Smith also asks MFS to confirm that it "does not reserve the right to change its intention with respect to these matters".
The letter comes as brokerage First NZ Capital raised its rating on the stock to Outperform from Neutral, saying it expected the bid to be increased.
Shares in Tourism Holdings closed down 2c at $2.52.
Tourism Holdings - owners of attractions including Kelly Tarlton's and Milford Sound Red Boat Cruise - said it intended to release MFS' response to the letter to the NZX.
MFS chief executive Marshall Vann was not available for comment.
