China's Citic Capital builds 7.3% stake in Tourism Holdings
By Paul McBeth
Oct. 18 (BusinessDesk) - Chinese investment manager Citic Capital, which oversees US$21 billion of assets, has built up a 7.3 percent stake in Tourism Holdings, making it the motorhome operator's second-biggest shareholder.
Auckland-based Tourism Holdings said in a statement to NZX it hasn't had any contact with Citic or the entity holding the shares, HB Holdings, but will get in touch to acknowledge the stake. Milford Asset Management is the company's biggest shareholder with an 11 percent stake.
"THL has had discussions with a number of businesses in a number of countries with an interest in THL’s global strategy," chair Rob Campbell said. "We are confident in, and have no intention of altering, the strategy and look forward to updating shareholders today at the annual meeting."
Tourism Holdings is hosting shareholders at their annual meeting in Auckland today, where investors will vote to elect Cathy Quinn to the board, re-elect Graeme Wong and Grainne Troute, and sign off on increasing the director fee pool to $650,000 from $550,000.
In August, the company reported a 24 percent gain in annual net profit to $30.2 million, eclipsing the upgraded guidance it had provided. At the time it projected 2018 profit to be between $36 million and $39 million and said it would go into greater detail at the AGM.
Citic built up the Tourism Holdings stake between Sept. 11 and Oct. 16, buying 8.7 million shares for $42.2 million at an average price of about $4.82 a share. It was issued a further 142,000 shares under the dividend reinvestment plan for an aggregate $680,000.
The shares rose 1.7 percent to $4.89, having gained 30 percent so far this year.