Tourism Holdings surged to an 11-month high after cornerstone shareholder the Trouchet family got together with BGH Capital to lob in takeover bid for the campervan operator.
That was one of two deals lighting a fire under trading in Australia, with south Australian LNG giant Santos getting a A$28.9 billion bid from the Abu Dhabi National Oil Co as mergers and acquisitions nudging the heightened tensions in the Middle East out of the headlines, helping to drive gains on the trans-Tasman bourses.
Meanwhile, Australia’s stock exchange operator ASX sank on news the Australian Securities & Investments Commission launched an inquiry into ongoing concerns about its ability to run a stable market.
And Comvita hit an all-time low after warning about its upcoming earnings and tapping an investment bank to come up with options as it tries to rein in its debt.
A long tour
The S&P/NZX 50 index climbed 137.25 points, or 1.1% to 12,690.13, with 32 gainers, 17 decliners, and one company unchanged. Turnover across the main board was $147.1 million, of which Tourism Holdings accounted for $50.4 million.
The rental campervan operator soared 58% to $2.30, matching the price put forward by the Trouchet family and its partner BGH Capital to take over the company. The Trouchets joined the share register in 2022 when they sold ASX-listed Apollo Tourism & Leisure in an all-scrip deal.
“M&A’s seen as a sign of a healthy market, and we’ve started to see valuations become cheap,” said Peter McIntyre, an investment adviser at Craigs Investment Partners.
Gainers were broad-based in New Zealand, with Mainfreight up 3% at $69, Ryman Healthcare advancing 2.8% to $2.23, Gentrack up 2.6% at $2.56 and Kiwi Property Group increasing 2.3% to 89 cents.
Auckland International Airport increased 1.1% to $8.05 after its latest figures showed an increase in international passenger movements in May.
Take the power back
Meanwhile Meridian Energy rose 1.4% to $5.95 after its latest operating metrics showed robust hydro storage.
That boosted other energy companies, with Genesis Energy up 1.6% at $2.30, Mercury NZ rising 1.5% to $6.17 and Contact Energy gaining 1.5% to $9.12.
Meanwhile, Australian’s S&P/ASX 200 index was buoyed by an 11% gain for LNG firm Santos after it attracted a A$28.9 billion offer from Abu Dhabi National Oil Co, coming at a time when oil prices surged on the Israeli strikes on Iran’s nuclear programme, heightening tensions in the Middle East.
Air New Zealand, which counts oil as a major input cost, fell 1.7% to 58.5 cents.
The kiwi dollar traded at 60.18 US cents at 5pm in Auckland from 60.22 cents at 7am and 60.08 cents last week.
Vista Group International posted the biggest decline on the benchmark index, falling 3.9% to $3.44, while Oceania Healthcare dropped 3.2% to 60 cents.
NZX slipped 2.6% to $1.50. Across the Tasman, the ASX dropped 6.7% after ASIC launched an inquiry into the Australian stock market operator, focusing on its governance, capability and risk management after a series of serious failures by the marketplace.
Outside the benchmark index, Comvita sank 7.3% to 51 cents, having touched a record low 49.5 cents, after warning of more red ink at the annual result, and calling in advisers to explore all options available to the company to bring down its net debt.
Reporting by Paul McBeth. Image from Curious News.