With Australia in summer holidays mode, now may be a good time to give some thought to the holiday parks sector. There has been a roll-up underway in the fragmented industry for a few years now, with two listed stocks among the players buying up family owned holiday parks to create larger businesses with growing market capitalizations.
Aspen Group sold its 42 per cent stake in holiday parks fund Aspen Parks Property Fund to Discovery Parks, which now owns just over 90 per cent of Aspen Parks. Discovery Parks is wrapping up the takeover offer before it moves to compulsorily acquire the securities it does not have.
Aspen Group has done the right thing by Aspen Parks Property Fund’s 3,000 security holders and launched a proposal to merge both groups that if successful will tidy up their structure and solve the liquidity and other issues for Aspen Parks investors.