Takeover talks confirmed by Holidaybreak
HOLIDAYBREAK has confirmed that it is in takeover talks with Indian travel specialist Cox & Kings.
The company said that talks “may or may not lead to an offer” but added that they were based around Cox & Kings paying around 432.1p per Holidaybreak share, which values the company’s shares at just over £300m.
This is substantially higher than the 330p which the company’s shares were trading at just before yesterday’s announcement and the 293p they were trading at just over a week ago. The buyer would also assume Holidaybreak’s £240m worth of debt.
Cox & Kings, which is itself listed on the Mumbai Stock Exchange, specialises in offering luxury escorted tours worldwide. The company was started back in 1758 by Richard Cox, who was a regimental agent to the Foot Guards and it grew by offering banking and shipping services alongside other agency services.
It has been through several ownership changes over the years, but began in its modern form as a specialist travel agency when it was bought by Grindlays Bank with the backing of India’s former Prime Minister Indira Gandhi, who was keen to develop tourism in the country.
Holidaybreak, which has an operation in York, has not suffered from the problems faced by many other tour operators due to the strength of its PGL business, which offers educational holidays via schools.
The company has focussed more of its resources on this business, disposing of other assets seen to be non-core such as the London-based theatre booking agency sold in an £11m deal last month.
