Mumbai: Holidays and education travel firm Cox & Kings on Monday announced sale of Camping Division of its subsidiary Holidaybreak to French firm Homair Vacances for 89.20 million pounds (Rs 892 crore).
The travel firm, which has debt of Rs 4,200 crore, will use the proceeds of the transaction to reduce debt, Cox & Kings Director Peter Kerkar said on the sidelines of a press conference.
"The sale is consistent with our strategy of becoming a leisure and education travel group and allows us to focus on these businesses that have a global footprint and market leadership position," he said.
Of 89.2 million pounds, 85.5 million pounds (over Rs 840 crore) is payable in cash on completion of transaction and 3.7 million pounds is deferred relating to a tax refund, Cox & Kings said in a filing to BSE.
"This acquisition is a major development for Homair Vacances. We will develop this brand by respecting its DNA, as we have done with other acquisitions," Homair Vacances Chairman of the Management Board Alain Calme said.
The camping division provides outdoor family holidays at over 170 third party-owned campsites in 12 European countries.
Kerkar said there was no synergy between his existing businesses and the camping business. "The camping business requires huge capital expenditure as the mobile needs to be upgraded. With this sale, we will now focus on our two main businesses ? education and leisure."
Cox & Kings had acquired the camping division as part of its acquisition of Holidaybreak in 2011.
The completion of the transaction is conditional to fulfilment of customary conditions, including receipt of regulatory approvals.
Kerkar also said that Cox & Kings is planning to bring PGL centres on lease model, which provide outdoor education, adventure courses, study trips, skiing trips and summer camps for unaccompanied school children, to India.
"We launched PGL in Australia this January and hope to bring it to India in this financial year. Initially we will introduce PGL in places like Maharashtra, Gujarat and Delhi and gradually offer it in tier II cities. PGL is also offered across Europe," he said.
Homair Vacances specialises in outdoor holidays and is a major player in France.
The proceeds of the transaction would be used for debt reduction. Cox & Kings has a net debt of Rs 4,200 crore.
