Breaking: Holidaybreak agrees £312m Indian takeover

LEISURE firm Holidaybreak, which has an operation in Yorkshire, has agreed a £312m, 432.1p per share cash takeover from Indian suitor Cox & Kings.

The deal, for the Northwich-based owner of the PGL, Eurocamp and Keycamp brands, represents a  35.5% premium to the group’s  share price last Friday – the last business day before the offer period, and a 54% premium to the average share price for the three-months to the same date.

As well as the offer price, investors who were on the company register will still receive the previously announced 3.35p interim dividend.

In a statement the company said the offer provides shareholders with ‘a compelling opportunity to realise immediate value’.

Cox & Kings has received support for the takeover from shareholders representing approximately 31.8%  coimpany’s shares.

Commenting on the acquisition, Peter Kerkar, director of Cox & Kings, said: “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. 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.

“We also very much look forward to working with the Holidaybreak management team who have helped to develop the company into a leader in its various business areas.”

Martin Davies, chief executive of Holidaybreak, added: “I am proud of the significant progress we have made towards our objective of transforming Holidaybreak into an education focused business, both through expansion into the pan-European education market through the acquisition of Meininger, and by building on our high quality brands.

“While the board of Holidaybreak was confident that significant value could have been generated for shareholders over time through implementation of our standalone strategy, today’s announcement of the recommended acquisition of Holidaybreak by Cox & Kings provides certainty and immediate value to shareholders, in cash and at a premium.

“It also presents an exciting opportunity for Holidaybreak’s customers and employees to benefit from being part of an international travel company which shares our passion for delivering unique and valued products to our customers.”