Tour operator Cox & Kings is exploring an initial public offering for its education tour business in Europe and Australia as it believes it will generate better value for the company and its shareholders.
The education tour business is part of Cox & Kings’ operations, after it acquired the UK-based Holidaybreak for Rs 2,300 crore in 2011. Back then, it had acquired a hundred percent stake in Holiday break with an equity investment of around $230 million and a debt of around $500 million. A year later, it sold 34.4 percent of its stake in the firm, bringing down Cox & Kings’ ownership to 65.6 percent.
The education segment now contributes 30 percent to company’s revenue and 35 percent of earnings before interest tax depreciation and amortization (Ebitda) on a consolidated basis. In second quarter FY18, the company reported a consolidated revenue of Rs 668 crore and an Ebidta of Rs 298 crore.
The tour operator offers residential outdoor learning programmes and study tours for schools and colleges and owns 29 campuses in Britain, France, Spain and Australia. Kerkar said that the company controls 30 percent market share in education tours in UK and has grown 8 percent in the market.
Source: Business-Standard 