News: CHL Tourism Holdings Says Sells Shareholding In Camplify, page-3

I think this announcement speaks volumes about the 2 different business models.
One that is capital hungry and one that is capital light.

If CHL had $20m in THL shares - would they offload them?
Wouldn't need to. But when you look at THLs numbers, I dont blame them for liquidating.

- THL as of 31 Dec 23 had approx 500 vehicles (net) that they were building to increase fleet.
- Their capex to grow their fleet for the 24FY is expected to be $170m.
- They already increased their net debt position since 30 June by $118m. Ouch.

Very briefly on their Cashflow and Balance Sheet.
- At 31 Dec 23 they had $50m cash on hand (versus $77m at 30 June)
- Their operating cashflow was negative $79m in H1.
- They do have undrawn debt facilities of $240m

I dont blame THL for wanting to boost working capital. They cant wait for CHL to deliver returns when they have a pressing need now to invest in their own fleet (and obtain a return now).

Things may have gotten a little too skinny if they didnt.

It will be interesting however to see what the 'Change in Substantial Holdings' announcements will show over the coming weeks from CHL.