Cox & Kings to raise up to around $200M

Mumbai-based tour and travel firm Cox & Kings Ltd has obtained its board approval to raise up to Rs 1,200 crore (approximately $196 million) through issuance of securities including equity shares or equity-linked securities, qualified institutional placement and/or any other securities to eligible investors, as per a stock market disclosure.

Cox & Kings, formerly Cox & Kings India Ltd, however, did not reveal further details and the time frame within which it plans to raise the money or the purpose of the proposed issue.

Cox & Kings had acquired this unit in 2011 as part of acquisition of Holidaybreak through its UK unit Prometheon Holdings (UK) Ltd.

Two years ago Citigroup’s private equity arm, Citigroup Venture Capital International or CVCI, invested $137.75 million (Rs 764.66 crore) in Prometheon Holdings (UK) Ltd. Part of the proceeds from the fund raised was to be used to repay debt that Prometheon took to acquire Holidaybreak.

The amount received from the sale of camping division, is to be used partly to reduce the debt of the company.

Cox & Kings provides travel management solutions. Its services include destination management, outbound tourism, business travel and conference solutions. It also offers domestic holidays, trade fairs, foreign exchange and insurance.

On Thursday, shares of Cox & Kings closed at Rs 318.65 per share, down 0.34 per cent on the BSE in strong Mumbai market.

The firm has a market cap of around Rs 4,350 crore and the proposed fundraising would lead to significant equity dilution.

(Edited by Joby Puthuparampil Johnson)

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