Cox & Kings sells UK Unit Explore Worldwide to Hotelplan U.K for Rs.258 crores

One of the largest travel agents in India Cox and Kings Limited informed exchange that it has sold 100 percent issued and outstanding shares of Explore Worldwide Limited a part of UK based subsidiary. The buyer Hotelplan UK group bought it at GBP 25.8 million (around Rs.260 crores).

The company informed that the sell was for reducing the debt of the company at holidaybreak level and it is a strategic positioning of their international leisure portfolio. Cox and Kings has consolidated debt of Rs.3456 crores for year ending March 2015 a decrease of 32 percent on yearly basis.The sell will help company to increase focus on three key verticals- Leisure, Education and Hybrid Hotels.

Explore Worldwide which is a specialist in adventure tours is a part of Holidaybreak which was acquired by Cox & Kings in 2011 for around Rs.2300 crores and the deal was funded with debt valued around Rs.1500 crores. The Explore Worldwide has generated net revenue of GBP 11.2 million and EBITDA of GBP 2.3 million for year ending March 2015.

In terms of financials the total operating revenue of Cox and Kings on year ending March 2015 stands at Rs.2569.09 crores an increase of 11.33 percent on yearly basis. EBITDA margin is at 39.37 percent compared to 48.13 percent for same period last year. Net profit of the company is stand at Rs.90.39 crores. A decrease of 80 percent on yearly basis.

The stock of the company is trading at Rs.245.45. A decrease of 2 percent from the previous close.

Cox & Kings Limited is an India-based travel company engaged in tours and travel activities. The Company is engaged in providing various services, such as destination management, outbound tourism, business travel, incentive and conference solutions, domestic holidays, non-resident Indian (NRI), trade fairs, foreign exchange and insurance. It operates a range of group and individual tours to destinations throughout the Indian subcontinent for clients from all over the world.