Cox And Kings Limited is planning to buy UK-based travel company Holidaybreak Plc.

Holidaybreak is valued at 225.24 Mn pounds based on its Monday's close of around 365 pence on London Stock Exchange.

Cox & Kings has made an indicative all-cash offer of 432.1 pence a share, representing a premium of 18% to the stock's Monday close, which would value the firm at 270 Mn pounds (Rs.1900-2000 Cr).

Holidaybreak is being advised by Citigroup, while Nomura is advising Cox And Kings on the deal.

Transaction Reference: Economic Times

Another travel company, TUI Travel, was initially rumoured to be a potential bidder. Its management has, however, ruled out making an approach.

Holidaybreak provides residential outdoor education and adventure trips, educational travel tours.

It operates in four divisions - Education division offers residential outdoor education and adventure trips for school chidlren under 'PGL', 'NST', 'EST' brand; hotel breaks division provides domestic short break packages under the 'Superbreak' and 'Bookit brands'; adventure travel division offers adventure tours under the 'Explore' and 'Djoser' names and language travel and gap year trips under 'Travelplus' name; and camping division provides outdoor family holidays in mobile-homes and luxury tents on third party owned camp-sites in Europe under 'Eurocamp' and 'Keycamp' names.

Last month, Holidaybreak sold its West End Theatre Bookings Ltd. unit for 10.9 Mn pounds ($17.9 Mn) to repay debt of 148.8 Mn pounds.

Holidaybreak reported half-year revenues of 140 Mn pounds with pre-tax loss of 19.2 Mn pounds.

Mumbai-based Cox and Kings Ltd, operates through four verticals - leisure travel, corporate travel, visa processing and foreign exchange. It currently has 80 franchise sales outlets in 44 locations across India.

In 2010, it raised $65 Mn via GDR to fund its expansion and acquisitions.

Recently, Cox and Kings through its Singapore subsidiary has acquired stake in US-based travel company Radius. In Nov'08, it acquired Australia-based Tempo Holidays for about $25 Mn. The acquisition was funded by internal accruals and offshore debt from Axis Bank.

It also acquired Australia-based travel and tour operator MyPlanet and Bentours Australia in Dec'09.

The current market cap of the company is Rs.2,689 Cr and for FY2011, it posted total revenue of Rs.252.92 Cr with PAT of Rs.76.72 Cr.

This year in February, MakeMyTrip.com acquired 79% stake in Singapore-based travel agency Luxury Tours & Travels Pte Limited (LTT) for $3 Mn.

Previous Article

Walt Disney Offers To Buyout UTV Software For Rs 2000 Cr

Next Article

PE Backed Augere To Sell 4G Spectrum, Quit India Operations

KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
27/07/11	Holidaybreak - Cox And Kings	M&A	Cox and Kings Limited	510.00

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
17/05/12	Private Equity	Looking For	Cox and Kings Limited	140.00	Planned
14/05/12	M&A	Expolanka Holdings Plc	Akquasun Holidays India Private Limited	0.93	Completed
03/05/12	M&A	MakeMyTrip India Private Limited	D Pauls Travel and Tours Limited	-	Rumor
23/04/12	M&A	MIH Group	Tek Travels Private Limited	-	Completed

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
Cox and Kings Limited	LIZ Investment Private Limited Sneh Sadan Graphic Services Private Limited Kubber Investment (Mauritius) Private Limited A B M Good	Turner Morrison Building, 16 Bank Street, Fort,Mumbai-400001. Maharashtra, India.	Thomas Cook India Limited Kuoni Travel (India) Private Limited	www.coxandkings.com

  Advisor

Nomura Financial Advisory and Securities (India) Private Limited