Big acquisitions lift NZX 50

The S&P/NZX 50 Index rose 78 points, or 0.6%, to 12,849.68. Turnover was $226 million. The NZ dollar was trading at 68.95 US cents today, down from 68.05 cents yesterday.

Tourism Holdings led the market higher, jumping 6% to $3.02, after announcing it would absorb its ASX-listed competitor Apollo Tourism & Leisure in a deal valued at $144m.

But instead of stumping up cash, the NZ company will issue enough new shares to give Apollo shareholders an approximately 25% stake in the enlarged group.

Tourism Holdings said it hopes to cut as much as $19m of costs from the combined operations and apply for a foreign-exempt listing on the ASX so Australian investors can buy in easily.