British leisure travel group TUI Travel Plc increased its holding in New Delhi-based Le Passage to India Tours and Travels Pvt Ltd (LPTI) to 91 per cent by acquiring 41 per cent stake more for an undisclosed amount.
The deal was completed in December 2013 and disclosed as part of a financial statement by LSE-listed TUI.
During the six-month period ended March 31, 2014, the group acquired two businesses, including a further 41 per cent of LPTI, a tour operator and destination management company, on December 20, 2013. The group also acquired five travel agents in Germany as part of its second acquisition.
The firm did not share exact details of the additional stake purchase in the Indian firm but said the total fair value for all these acquisitions put together was £25 million. This comprised £13 million initial cash consideration, £2 million deferred consideration and £10 million non-cash consideration for the group’s share of the LPTI joint venture.
All these acquisitions put together have added £20 million to the group’s revenue in the six-month period.
Founded in 2000 by travel industry veteran Arjun Sharma, LPTI offers individual travel, group travel, luxury travel, rail journeys, soft adventure, charter operations, cruise handling, museum tours, educational trips and wellness holidays.
In 2006, TUI formed an equal joint venture by acquiring 50 per cent stake in LPTI and marked it entry in India.
TUI competes with a bunch of players in India including public listed firms like Cox & Kings and Fairfax-controlled Thomas Cook.
(Edited by Joby Puthuparampil Johnson)
