- Cox & Kings is a 260-year-old company which was established in 1758 and is one of the oldest travel comapnies.
- Indian travel giant MakeMyTrip and US-based Ebix Inc have joined the race to acquire short on money travel company Cox & Kings.
Indian travel giant MakeMyTrip and US-based Ebix Inc have joined the race to acquire short on money travel company Cox & Kings, reported ET.
Both the entities are lured by the idea of acquiring loyal and high-end customers of one of the country’s oldest brick and mortar travel companies.
Talks are being held with Peter Kerkar who is the promoter of Cox & Kings and who owns around 21 percent of the company, and Yes Bank which has acquired an 18.55 percent stake after invoking the pledged shares against the debt.
Last month, Ebix acquired Indian Online Travel company Yatra for $337.8 million (Rs. 2,300 crore) and is looking at entering the local Indian operation swiftly. Ebix also made a bid for Mumbai-based Trimax IT Infrastructure & Services which is under the process of bankruptcy.
Ebix has spent about $1 billion on acquiring companies in India to fortify its presence in the travel and tours space.
Problems of Cox & Kings
The stocks of Cox & Kings has gone down given their problems with the repayment of the loan.
Since April 1, market value has plummeted 93% to ₹183 crore based on Friday’s closing price of ₹10.39 on the BSE, from ₹2,485 crore. The promoter’s holding has been dropping continuously—to 39.73% at the end of June from 49.8% from three months before. The stake has declined even further with Yes Bank invoking the share pledge to pick up an 18.55% stake.
The company had a total noncurrent debt of ₹1,240 crore and short-term borrowings of ₹1,704 crore on a consolidated basis, according to the FY19 annual report. It has other financial liabilities of about ₹1,500 crore.
Cox & Kings is a 260-year-old company which was established in 1758 and is one of the oldest travel comapnies. It is headquartered in India and the UK and is having subsidiaries in the Netherlands, UAE, Japan, Singapore, Australia, and New Zealand.
The company has operations spread across 22 countries and 4 continents. The company started as an army agent, travel agent, printer and publisher.
Historically, It has been an army agent, a travel agent, a printer and publisher. It has also worked as a newsagent, cargo agent, ship-owner, banker, insurance agent, and dealer of several travel-related activities. Its core activities now include the sale of packaged holidays.