Tourism Holdings (ASX:THL) announced a conditional agreement to sell its UK and Ireland business assets to Portugal-based RV rental giant, Indie Campers.
The deal, structured at net asset value plus a goodwill payment of NZ$8 million, marks a decisive shift in thl’s global strategy to optimise its return on funds employed and release capital from underperforming regions.
The sale includes several key conditions, most notably the requirement for depot landlords to consent to lease assignments.
Furthermore, thl has committed to a three-year "restraint of trade" agreement, effectively exiting the UK and Irish markets for the foreseeable future.
To facilitate the transition, thl is underwriting a 15% vehicle sales margin on the future resale of the fleet over the next three years, though this is capped at the goodwill value.
The move is a double-edged sword. While the transaction is expected to generate a one-off gain of up to NZ$6.8 million, the timing will lead to a NZ$1.1 million dip in underlying EBIT for H2 FY26 due to the loss of high-season earnings in the fourth quarter.
All proceeds are earmarked for debt repayment. CEO Grant Webster characterised the divestment as a "disciplined capital management" move, acknowledging that while the UK business held potential, it ultimately failed to achieve the scale necessary to meet the company’s original growth aspirations.
At the time of reporting, Tourism Holdings' share price was $2.03.