THL is reaching a new year high today, following the proposed...

THL is reaching a new year high today, following the proposed merger with Apollo Tourism.
It seems to be another rational decision by the company, after the recent announcement of selling their (loss making) P2P rental business in NZ (still subject to NZCC approval).

The proposed merger with Apollo Tourism has a lot of advantages, according to their presentation.
In particular :
- expected synergies of 16.2 m AUD to 18.1 m AUD /annum,
- fleet rationalisation expected to generate in excess of 38 m AUD of net debt benefit,
-" merger represents opportunity for THL to significantly increase its fleet base at a lower cost than through purchasing new RV directly".

The merger is expected to be finalised in Q4 FY 22.
A lot of approvals are required for this deal which may take more time than expected (cf recent disposal of P2P business which is still expecting NZCC approval).