Tourism Holdings Ltd, at present under a $32.3 million takeover bid, has appointed an independent advisory company to consider the offer.
Newly-incorporated New Zealand-based investment company Ballylinch gained a 19.1% stake in Tourism Holdings, which it recently bought from United States-based Sterling Grace Capital Management for $17.2 million.
Ballylinch then launched a takeover offer of 67.5c a share for up to a further 40.8% stake in Tourism Holdings, conditional on gaining 50% acceptances, which would cost a total $49.5 million if successful.
Tourism Holdings chairman Keith Smith said Simmons Corporate Finance Ltd had been appointed to prepare an independent advisers report, while a sub-committee from Tourism's board had been formed to consider and respond to the takeover offer. The committee is comprised of independent directors, Keith Smith, Rick Christie, Graeme Wong and John Bongard.
Shares in Tourism Holding's spiked 16% to 70c on the takeover announcement.
