Cox & Kings buys UK's travel company 'Holidaybreak' for Rs 2250 cr

Stocks

oi-Shoaib MD

By Shoaib Md

Published: Thursday, July 28, 2011, 10:55 [IST]

Cox & Kings, the Indian tour company, announced in a filing with Bombay Stock Exchange that it will be buying British travel specialist firm, Holidaybreak, for 312 million pounds. In dollar terms it will be approximately $511 million, or in Indian rupees the value of the deal comes up to Rs 2,250 crore, in cash as it expands into new product areas and markets.

According to the terms of the acquisition, shareholders of the London-listed Holidaybreak will receive 432.1 pence in cash per Holidaybreak share. The offer price places Holidaybreak"s shares at approximately 312 million pound and represents a premium of 35.5% to the closing price of 319 pence per Holidaybreak share on July 22, the date after which the offer was made. It also represents a premium of 54.2% to the average closing price of approximately 280.3 pence per Holidaybreak share for the three-month period up to July 22.

Peter Kerkar, director of Cox & Kings, has been quoted by the media as, “The acquisition of Holidaybreak marks an exciting new step for Cox & Kings in its development. We have been growing rapidly and have also significantly expanded our outbound tours operation from India and Oceania."

He further added, "Holidaybreak adds new product areas and markets which provide us with attractive opportunities to leverage Cox and Kings" global network and accelerate the development of both Holidaybreak and Cox & Kings" businesses."

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