Shares in New Zealand Experience have risen 10% after the investment firm Rangatira secured a majority stake in the owner of Rainbow's End in Auckland.
The Wellington-based firm is paying 36 cents a share for a 75% stake of Canadian-based Garlow Management, triggering a full take-over bid.
New Zealand Experience's stock rose 15% at one stage before easing back to rise 4 cents to 45 cents each, and Hamilton Hinden Greene director, Grant Williamson, says shareholders will be disappointed by the offer.
"The offer is certainly at the lower end of what investors would have expected, in the last 12 months the shares have traded between 35 and 47 cents so the take-over price is at the lower end of that range."
New Zealand Experience operates the Rainbows End theme park in Auckland, whose profit fell 4% to $1.4 million in the year to June.
Garlow, the trustee for the estate of George Ryerson Gardiner, put its stake up for sale in August.
Rangatira tends to invest in medium-sized manufacturing firms with annual turnover of $10 - $15 million but has recently begun pushing into the technology sector, investing in early stage high-growth ventures.