Cox & Kings arm acquires Australian travel firm

Written by Press Trust of India | Mumbai | Updated: Dec 31 2009, 06:28am hrs
Travel and tour company Cox & Kings on Wednesday said one of its overseas arms has acquired Australia-based MyPlanet Australia Pty Ltd and Bentours International Pty Ltd for an undisclosed amount.

In a filing to the Bombay Stock Exchange, the company said Cox & Kings (Australia) has acquired a 100% stake in the unit of European tourism group TUI Travel Plc. Cox & King (Australia) has purchased the company from TUI Travel's First Choice Holdings Australia Pty Ltd, the filing added.

Although Cox & Kings did not disclose the deal value, the company said the acquisition has been done through earn-out mechanism and not from the proceeds of the initial public offer (IPO).

Earn-out is a mechanism wherein a part of the acquisition cost is linked to future performance of the acquired entity and paid over a period by the buyer.

The global travel and tour operator had in the month of November raised over Rs 610 crore through an initial public offer, which was subscribed over six times. Shares of Cox & Kings (India) closed at Rs 451.95 on the Bombay Stock Exchange on Wednesday.