Sealing the largest acquisition by an Indian travel company, Cox & Kings (C&K) on Wednesday announced the acquisition of UK-based Holidaybreak for £312 million (Rs 2,250 crore).
In a move aimed atexpanding into new product areas and markets, Cox & King made the acquisition through its subsidiary Prometheon Holdings.
The offer price of 432.1 pence is an 18.0% premium to its closing price on Monday and values Holidaybreak’s fully-diluted share capital at £312 million.
C&K has received support for the acquisition from major shareholders and Holidaybreak directors who represent 31.8% of the issued share capital of Holidaybreak.
“We believe the valuation is fair and marks an exciting new step for Cox & Kings in its development,” said Peter Kerkar, director, Cox & Kings. “This gives us opportunities to leverage Holadaybreak’s tour operations in other parts of the world and we are looking at 100% accretion through this acquisition.”
Cox & Kings shares closed 3.0% down at Rs 192.9 per share on the National Stock Exchange while Holidaybreak shares were up 4.0% at 429.5 pence on the London Stock Exchange.