Tourism Holdings, the campervan rental company, is worth more than investor John Grace's offer for control, according to an independent valuation.
Shares of Tourism Holdings were valued at 97 cents to $1.27 by Simmons Corporate Finance - more than the 67.5 cents Grace's Ballylinch LP investment vehicle has offered to
lift its stake to between 50.01 per cent and 52.2 per cent, according to Tourism Holdings' target company statement.
The stock last traded at 70 cents on the NZX, valuing the company at $68.7 million.
The company's independent directors hired Simmons to assess the offer. That firm concluded it was "Materially below" the fair value range and there was no compelling offer to accept.
If successful, Ballylinch would have control of the company but the offer doesn't reflect a control premium.
Tourism Holdings' chairman Keith Smith advised shareholders to reject the offer, saying the company's improving forecasts show there's greater value to be achieved in the business, even if it takes some time to achieve the Simmons valuation.
Still, he said the board will go back to Ballylinch to see if it will improve its offer.
Earlier this month, Ballylinch said it won't lift its takeover bid which was at a premium of 13 per cent when it was first made.
The investment vehicle, which has a 19 per cent stake in Tourism Holdings, wants another 40.85 per cent, and is conditional on winning more than half the company's shares.
Ballylinch said its offer gives shareholders an opportunity to exit a relatively illiquid stock and gives smaller shareholders an opportunity to avoid paying "significant brokerage" fees.
The offer closes at the close of business June 30.
