Buyer pulls out after Waitomo deal talks fail
Tourism Holdings chief executive Grant Webster has downplayed the significance of the cancelled sale of some of the company’s Waitomo assets.
In October the listed tourism operator announced it was discussing the sale of its Kiwi Experience business and some of the Discover Waitomo businesses, including Black Water Rafting, Ruakuri and the Waitomo Homestead.
Tourism Holdings Ltd (THL) is preparing for major new investments overseas, and the money from the sale of the assets would have been reinvested.
‘‘The opportunity arose to sell them to what we thought was the right operator at the right price, so it’s disappointing given the effort that went into it,’’ he said.
THL and the unnamed buyer were unable to agree on the price, Webster said.
But the failure to finalise the deal wouldn’t have any effect on the overall business, he said.
THL has remained clear in its view of the value of the tourism businesses, including strategically, economically and socially, he said.
‘‘We have received offers for these businesses for many years and we are sure we will continue to do so. Just as we always have, we will only ever consider any interest if we believe it is right for the business and the teams.
‘‘However, the focus now is to ensure there are no distractions for anyone, including our customers, as we head into the current high season under THL ownership,’’ Webster said.
Major recent initiatives included the acquisition of Fairfax Industries, which manufactures fibreglass vehicle bodies; further investment in computer and mobile phone applications; and possible business purchases in New Zealand, the United States and the United Kingdom.
At the recent annual meeting chairman Rob Campbell outlined initiatives to reduce the company’s carbon footprint by 3.4 per cent across its New Zealand and Australian operations.
‘‘We’ve set ambitious sustainability targets, including a 20 per cent reduction in our total emissions by 2025 and for at least 5 per cent of our total rental vehicle fleet to be low-emission vehicles by 2020.’’
The company was on track for a net profit after tax of $50 million for the 2019-20 year, he said.