Cox & Kings divests majority stake in LateRooms and Superbreak

Cox & Kings (C&K) has sold 100% of LateRooms UK to Malvern Enterprises UK for GBP 20.0 million. C&K’s 65.58%-owned subsidiary, Holidaybreak has sold 100% of its Superbreak business to Malvern in a transaction whereby Holidaybreak received a net cash consideration of GBP 9.25 million. The proceeds were used to pay off debt. C&K has bought a 49% stake in Malvern for GBP 6.37 million.

Malvern is 51% owned by a reputed Europe-based private equity investor. The transaction will enable Malvern to independently follow its own strategic growth path in the underpenetrated city-breaks market within the online package-tour space. Brands Superbreak and LateRooms are likely to gain substantially from a unified management team under the strategic guidance of the private equity investor and C&K. The transaction is effective March 31, 2016.

C&K’s 49% equity stake in Malvern will be accounted for as an Investment in Associate Company, with its proportionate share of profit/(loss) reflected in C&K’s P&L from FY17 onwards.