Cox & Kings in talks to sell minority stake in UK subsidiary: report
22 Jun 2012
Cox & Kings, one of India's oldest travel companies, is planning to raise about $140 million (Rs788 crore) by selling a minority stake in its UK subsidiary to reduce debt, the Economic Times yesterday reported, citing people close to the development.
The Mumbai-based travel company is talking to a few private equity firms like KKR, Bain Capital, Carlyle and TPG over the proposed sale.
"The company is talking to several players. However, the transaction is yet to be concluded. Clearer picture is expected to emerge in the next few days," the paper quoted a person close to the deal as saying.
The money will be used to repay debt raised during its Rs2,250-crore (£312 million) acquisition of Holidaybreak Plc, the report said. (See: Cox & Kings to buy UK's adventure travel firm Holidybreak for £312 million)
That acquisition was funded through equity of $200 million and remainder by debt from Axis Bank. It was also the largest overseas acquisition done by an Indian travel firm.
Last month, the company's board approved plans to raise money from investors by selling shares of its UK holding company, Prometheon Holdings.