 Poster: A snowHead
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The ski resort of Kitzbühel (KitzSki) has a new major shareholder.
The American investor LongRange Capital has acquired a 31.85 percent stake in the Kitzbüheler Bergbahnen. Much to the dismay of the Kitzbühel mayor.
Previous shareholder remained anonymous
The share will officially be transferred to LongRange Capital's Luxembourg subsidiary, Alpin Unlimited. These are the shares that were previously held by an unknown Liechtenstein shareholder, under the name Meleda Anstalt. The exact owners of this company have never been traced, not even after a legal complaint from the Kitzbüheler Bergbahnen.
LongRange Capital
The new American major shareholder is based in Stamford, Connecticut and, according to its own website, has a capital of 1.7 billion euros. "KitzSki is one of the top ski resorts in the world, and we are excited to become a significant minority investor," said Bob Berlin, Founder and Managing Partner of LongRange Capital in a press release. "Alpin Unlimited wants to build a strong partnership with KitzSki and its stakeholders to contribute to the long-term success of the ski area." The Luxembourg branch is said to have been created to establish long-term partnerships with ski resorts in Europe, of which Kitzbühel is the first.
Criticism from Mayorof Kitzbühel
The company says it does not want to exert any direct influence on business operations. In their own words, the ski area is already very successful.
For Kitzbühel Mayor Klaus Winkler, the American interference is also undesirable. In a reaction, he says he finds it "distasteful" that foreign investors take stakes in the Kitzbüheler Bergbahnen through investment companies: "We will certainly not allow minority shareholders to influence the operational activities. Currently, the city of Kitzbühel has a majority stake in the ski area, this share is around 50 percent.
https://longrangecapital.com/news-article/alpin-unlimited-has-acquired-an-interest-in-bergbahn-ag-kitzb%C3%BChel
https://tirol.orf.at/stories/3259696/
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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"Distasteful" that foreigners "interfere" (invest), but they love to have our money as tourists!? What an idiot. I don't love hedge funds owning ski areas but capital is required and somebody has to bring it. If Herr Mayor doesn't like it, he can try to find a local willing to write a huge check on a low-elevation ski resort with a ton of history. Bleating and whining by the very fortunate....spare me!
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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@Scooter in Seattle, "low elevation" ... not in an Austrian context.
I share his distaste.
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You need to Login to know who's really who.
You need to Login to know who's really who.
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But will they invest, or be happy to sit on their hands.
Indeed they can’t force anything themselves being minority shareholders but they could well block things like fund raising if it dilutes them etc., so could be a right pain in the back bottom.
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Suspect its a flex to be allowed into the next round of the global party that Alterra and Vail are hosting. Maybe its a come and get me for a quick flip. I mean the website doesn't look in any way like its just been chucked together in a couple of hour with tags still describing it as a hospital etc
https://www.alpinunlimited.com/
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You'll need to Register first of course.
You'll need to Register first of course.
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It does seem a bit odd, the website is poor and given the local council has 51% of the shares control is going nowhere (no way will the Tirol / Federal government let control of the Kitzbühel ski area fall into non Austrian hands). Perhaps they think there might be a profit in selling on to Vail or whoever. Given the rather mysterious nature of the previous ownership who is to say that any money has actually changed hands. Perhaps it suits someone for the beneficial owner of the shares to now be known. The investment fund does seem to have an odd collection of investments seems to like buying up family firms fallen on hard times
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@Dave of the Marmottes, titter. that is a very gash website 
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@Scooter in Seattle, They're not investing new capital - they're buying existing shares.
What they will look for next will be more profits - possibly attempting to achieve this by introducing the North American "season ticket" pricing model instead of the usual European, weekly model. If they think Europeans are going to pay €900 for a one-week lift ticket (which is approx the quote for an ad hoc week in Whistler last season) they're mistaken - or at the very least, they will totally change the target market and will drive away many of their current guests. Unlike in the US, people can just drive 20-30 minutes down the road and ski the Ski Circus, Zell am See/Kaprun, SkiWelt or Hochkonig and elsewhere for less than half that price. For tourists driving from Scandinavia, Netherlands or Germany or flying from the UK, another 30 minutes makes little difference. For tourists from Southern Germany and Austria who ski most weekends and occasional full weeks there are far better season ticket deals like the Salzburgerland Superski Card.
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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what more can they invest in? the lift system is one of the best in the world. Good hotels, restaurants and facilities already
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They are not going to be changing the business model in any way, all they have done is bought a tranche of shares. Control remains with the majority shareholder, the local council, who will not be selling their shares or changing the way the company is run (largely for the benefit of the town of Kitzbühel). I dont see where the opportunity for profit is here unless they believe they can sell the shares for more than they paid for them, I cant see that the lift company pays big dividends. Perhaps they are eyeing up a sale to one of the big US resort companies who might see the ownership as way to build a strategic partnership. Perhaps they were offered the shares cheaply as the previous owner wanted a discrete disposal without too many questions being asked.
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snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
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Doesn't Liechtenstein count as a foreign investor then? The shares are going from one foreign investor to another,
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FAQ
