Tour operator Cox & Kings , on Wednesday, agreed to buy British specialist travel company Holidaybreak for 312 million pounds (USD 511.3 million) in an all cash transaction.
The deal is looked upon as a game changer for the India-based company.
Speaking to CNBC-TV18, Peter Kerkar, group CEO at Cox & Kings said the acquisition will be funded via a combination of debt and equity. "We have created a special purpose vehicle (SPV) to fund this acquisition," he informed adding, "…the total deal size is at Rs 2,350 crore."
It will be a 100% acquisition of the company, and it will be subject to majority approval from the shareholders of the company. Kerkar does not expect any hiccups as far as shareholder approval is concerned. "We are pretty confident that it should go through seamlessly," he said.
“We will use the cash balance of Rs 1,000 crore to fund this deal," he said adding, “will raise more funds if required."
Kerkar expects the deal to be EPS accretive from the start.
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