Tourism Holdings Board Recommends Offer

May 21, 2007

Tourism Holdings Board Recommends
Mfs Living And Leisure Offer

Leisure operator MFS Living and Leisure Group (ASX: MPY) is pleased that the independent advisor’s report for Tourism Holdings Limited (NZX: THL) provides a compelling endorsement of its Offer for Tourism Holdings.

The independent advisor’s report values Tourism Holdings in a range from NZ$2.67 to NZ$3.07 per ordinary share.

Accordingly, the independent directors of Tourism Holdings have unanimously recommended that shareholders accept the offer of NZ$2.80 per share.
MFS Living and Leisure chief executive Marshall Vann said the independent advisor’s report and the Tourism Holdings’ independent directors’ recommendation confirmed that MFS Living and Leisure’s offer should be a compelling one for shareholders.

“I am delighted with the unanimous recommendation of the Tourism Holdings’ independent directors. We will have the offer documents in the mail to shareholders shortly.

“The price is significantly above brokers’ target prices before the announcement and is a very attractive premium.”

The NZ$2.80 per share offer price is a 29 per cent premium to Tourism Holdings’ five day volume weighted average price prior to the takeover announcement.

The NZ$277 million cash offer for Tourism Holdings will create one of Australasia’s largest leisure owners and operators.

About MFS Living and Leisure Group

MFS Living and Leisure Group is a stapled group comprising MFS Living and Leisure Trust and MFS Living and Leisure Limited and is listed on the Australian Stock Exchange (ASX:MPY).
MFS Living and Leisure operates in the leisure industry, through Australian Alpine Enterprises Holdings Pty Ltd (‘AAE’) and the Oceanis Group (‘Oceanis’).
MFS Living and Leisure is a worldwide diversified leisure business owner and operator committed to delivering naturally inspiring experiences. The group’s attractions comprise aquariums, ski fields and tree top walks.

MFS Living and Leisure operates its aquarium assets through its business, Oceanis. The Group’s assets include Melbourne Aquarium and UnderWater World (Mooloolaba) in Australia, Siam Ocean World in Bangkok Thailand, Busan Aquarium in Korea and Shanghai Ocean Aquarium in China.

MFS Living and Leisure’s ski resorts are operated through AAE and comprise Hotham and Falls Creek in Victoria, Australia. The resorts collectively account for approximately 26% of the Australian skier market (by number of skier days).
Recently, the Group acquired the rights to develop and operate tree-top walkways in Australia, through its purchase of the Otway Fly tree-top walk in Victoria. MFS Living and Leisure is currently developing a second tree-top walk at Illawarra in New South Wales.

Further diversifying the Group’s operations, MFS Living and Leisure recently finalised the acquisition of the Northbank Place site in Melbourne’s CBD. MFS Living and Leisure purchased this site through its transaction to acquire the Oceanis Group in 2006.

MFS Living and Leisure plans to develop the site into a three-tower, mixed use project with an expected end value of approximately A$200 million, in a joint venture with property developer Far East Consortium (a subsidiary of the Hong Kong-listed Far East Consortium). While property developments are not considered central to the business of MPY, the Group is always seeking opportunities to expand its core leisure offerings through such synergistic property projects in joint venture with experienced developers.

Market cap AUD $187.3 million
Shares on issue 180.1 million
First listed 14 May 1999
Current share price AUD $1.04 (closing price as at 18/05/07)

About Tourism Holdings Limited

Tourism Holdings Limited (NZX: THL) is a leading owner and operator of New Zealand’s tourism and leisure attractions. THL’s attractions span leisure hire services, holiday packaging and a comprehensive portfolio of tourism and leisure attractions located on the North and South islands.

THL’s portfolio of tourism and leisure assets in New Zealand is operated through its Tourism Leisure Group and includes the following iconic attractions:

- Fullers Bay of Islands
- Awesome Adventures
- Kelly Tarlton’s Antarctic Encounter and Underwater World
- Waitomo Glow worm Caves including Aranui Cave and Ruakuri Caves
- The Legendary Black Water Rafting Co.
- Milford Sound Red Boats
- Milford Deep Underwater Observatory
- Johnston’s Coachlines including Ski Shuttle
- Great Sights, including Discover New Zealand retail.

THL’s Leisure Hire division operates assets in Australia and New Zealand under the Maui, Britz, Skiwi and Backpacker brands, while CI Munro manufactures motor homes and camper vans for the tourism markets in both countries, primarily servicing the needs of its internal businesses.
THL’s KX Group operates in New Zealand and Fiji, providing nation-wide coach and charter services including Airbus, Kiwi and FeeJee Experience and Tourist Transport Fiji.

Market cap NZ $269.0 million
Shares on issue 98.2 million
First listed 3 June 1986
Current share price NZ $2.74 (closing share price as at 18/05/07)

ENDS

© Scoop Media