Tourism Holdings has downgraded its full-year earnings outlook as it faces a revised takeover proposal from a private equity consortium.
The company now expects underlying net profit of $40 million to $43 million for FY26, down from earlier guidance of $43 million to $47 million. The downgrade reflects softer consumer confidence, global travel disruption, the impact of the Middle East conflict on vehicle sales, weaker domestic rental demand in Australia, and foreign exchange headwinds.
Vehicle sales have slowed as customers delay purchases, pushing net debt to an expected $460 million to $470 million at year-end, well above the company's previous target of sub-$400 million. Tourism Holdings said it remains within banking covenants and has more than $300 million of available liquidity.
The company received a revised, non-binding takeover proposal from a consortium led by BGH Capital and the Trouchet family, which already holds about 19.9% of the company. The indicative offer is $3.10 per share in cash.
The proposal is highly conditional, subject to due diligence, financing, internal approvals, a board recommendation, and an independent valuation. The board is assessing the proposal and has not yet decided whether to grant due diligence access. The offer expires on 12 June if the company has not responded.
Tourism Holdings shares rose by nearly 30% on the NZX to $2.83 following news of the takeover offer.