Cox & Kings is in talks with some private equity funds such as KKR, Bain Capital, Carlyle and TPG to sell a minority stake in its UK subsidiary Prometheon Holdings and raise about USD 140 million, people close to the development have said. According to a Economic Times report by Apurv Gupta, the money will be used to repay debt raised during Cox & Kings' Rs 2,250 crore acquisition of Holidaybreak Plc, the step-down subsidiary of Prometheon Holdings. Anil Khandelwal, Chief Financial Officer of Cox & Kings, however,
declined to comment on the matter. But, people familiar with the development said that the talks have reached an advanced stage and the deal could be signed soon. One person added that a private equity buyer has already clinched the deal, but this could not be independently verified. “The company is talking to several players. However, the transaction is yet to be concluded. A clear picture is expected to emerge in the next few days," another person close to the deal said. Last month, the Cox board approved plans to raise money from investors by selling shares of Prometheon. A release to the BSE had said that Promethean will be issuing shares to investors soon. An Edelweiss Financial Securities Ltd report said that the equity infusion will help trim Promethean’s debt. The brokerage house said that Cox & Kings' fourth quarter India business performance was in line with expectation with its revenue surging. However, revenue for rest of the world has declined. In September, 2011, Cox and Kings, through Prometheon Holdings had acquired 100 per cent stake in Holidaybreak Plc in an all-cash transaction. The acquisition was financed through equity of USD 200 million and remainder by debt at subsidiary level from banks, lead managed by Axis Bank. Holidaybreak, a UK-listed specialist travel company operates in education and activity travel groups. It has operations in the UK, Germany, Switzerland, Austria, Belgium, the Netherlands and Ireland.
Click here to see the original article>declined to comment on the matter. But, people familiar with the development said that the talks have reached an advanced stage and the deal could be signed soon. One person added that a private equity buyer has already clinched the deal, but this could not be independently verified. “The company is talking to several players. However, the transaction is yet to be concluded. A clear picture is expected to emerge in the next few days," another person close to the deal said. Last month, the Cox board approved plans to raise money from investors by selling shares of Prometheon. A release to the BSE had said that Promethean will be issuing shares to investors soon. An Edelweiss Financial Securities Ltd report said that the equity infusion will help trim Promethean’s debt. The brokerage house said that Cox & Kings' fourth quarter India business performance was in line with expectation with its revenue surging. However, revenue for rest of the world has declined. In September, 2011, Cox and Kings, through Prometheon Holdings had acquired 100 per cent stake in Holidaybreak Plc in an all-cash transaction. The acquisition was financed through equity of USD 200 million and remainder by debt at subsidiary level from banks, lead managed by Axis Bank. Holidaybreak, a UK-listed specialist travel company operates in education and activity travel groups. It has operations in the UK, Germany, Switzerland, Austria, Belgium, the Netherlands and Ireland.