Friday 3rd April 2020
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thl advises that it has today entered into an agreement to undertake a managed exit from its technology joint venture, Togo Group (Togo), in favour of a digital strategy focusing on New Zealand and Australia and more closely aligned with thl’s core RV rentals business.
The agreement involves:
• thl retaining rights to assets in Togo Fleet (fleet management and booking system), Mighway in New Zealand and Australia (peer-to-peer RV rentals platform) and Togo Insights (telematics and data insights), and acquiring Togo’s shareholding in Outdoria;
• thl receiving a US$6 million payment from Togo’s other joint venture partner, Thor Industries, Inc. (Thor);
• thl having no obligation to provide further investment into Togo;
• Thor having a four-year option to purchase thl’s remaining interest in Togo for approximately US$20 million; and
• Togo making a fixed annual dividend payment to thl of approximately USD$600,000 for a maximum four year period.
thl CEO, Grant Webster, said “we believe that there remains substantial opportunity with Togo Group and our relationship with our joint venture partner Thor remains very strong. This realignment of Togo Group allows both thl and Thor to shift their digital strategies to become more aligned with their respective businesses, and allows both to focus on their respective balance sheet strengths.”
An Investor Presentation with further detail on the transactions is provided.
Chairman, Tourism Holdings Limited
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