Apollo & THL Merger

Australia’s Apollo Tourism & Leisure (ATL) is looking to merge with New Zealand-based tourism giant Tourism Holdings (THL), owners of the Britz, Maui and Kea brands, amongst others.

KT Insurance
Jan 07 2022

As part of the proposed merger, the two would expand their respective global networks including the rental, sales, manufacturing and service of RVs, with ATL shareholders owning 25 per cent of the merged company on completion. Overall, the deal values Apollo at approximately $137 million, some $34 million more than the company’s market capitalisation as of 9 December.

According to Apollo, the proposed transaction will give the combined group the financial strength to emerge faster from COVID-19, take advantage of near-term growth opportunities as borders reopen, and improve operational agility and resilience.

THL, which listed on the NZX in 1986 and has a market capitalisation of NZ$430 million, has agreed to apply for a foreign exempt listing on the ASX as part of the deal. Ultimately, THL and Apollo expect the merged entity to own a fleet of approximately 7000 vehicles, world-wide.

Luke and Karl Trouchet, directors of Apollo, said they considered the proposed transaction to be in the best interests of shareholders and have unanimously recommended the deal.

“The two businesses have similar operations and like-minded cultures, and we both strongly believe in the potential of the global RV market. The proposed merger would give us a better platform to meet the ongoing impacts of COVID-19, continue to offer our guests the best combination of products, services and prices possible, and better leverage the re-opening of global travel,” Luke said.

“With a more diverse portfolio of brands, strong presences in the key RV travel markets and a more robust balance sheet, the combined business will be better able to capitalise on near-term growth opportunities as borders re-open and cross-border tourism begins to return to pre-pandemic levels.

“I am very much looking forward to joining the Board and executive of THL and am excited by the prospects of what the two companies can achieve together. Karl and I will have a substantial holding and intend to be long term shareholders of the Combined Group,” Luke concluded.

While the deal still needs to be approved by regulators and shareholders, it is anticipated the proposed transaction will complete prior to the end of FY22.

KT Insurance