Holidaybreak Plc, the seller of Eurocamp and Keycamp vacations, agreed to be acquired by Cox & Kings (India) Ltd. in a deal that values the company at 312 million pounds ($511 million).
The Mumbai-based tour operator will pay 432.1 pence in cash for each share of Holidaybreak, the Northwich, England-based company said in a statement on Regulatory News Service.
Acquiring Holidaybreak adds new products and markets and gives the Indian company “attractive opportunities to leverage Cox and Kings’ global network,” Director Peter Kerkar said in the statement. Cox & Kings, partly owned by a unit of Deutsche Bank AG, held a December 2009 initial public offering to finance purchases and tap the rising number of Indians traveling overseas.
“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,” Holidaybreak Chief Executive Officer Martin Davies said in the statement.
Holidaybreak shares rose 15.5 pence, or 3.8 percent, to 427 pence in London. The shares have gained 25 percent so far this year, giving the company a market value of 301.5 million pounds.
Holidaybreak shareholders as of July 15 will be eligible to receive a previously announced 3.35 pence per share interim dividend payable August 10, the company said.
Holidaybreak said Cox & Kings has already received support from parties representing 31.8 percent of its shares.
The acquisition vehicle is Prometheon Holdings (UK) Ltd., a subsidiary of Cox & Kings. A unit of Citigroup Inc. is advising Holidaybreak, while Cox was advised by Nomura.