Cox & Kings has sold 100 per cent of LateRooms UK to Malvern Enterprises UK for GBP 20 million. Cox & Kings’ 65.58 per cent-owned subsidiary, Holidaybreak has sold 100 per cent 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.
Cox & Kings has now bought a 49 per cent stake in Malvern for GBP 6.37 million. Malvern is 51 per cent owned by a reputed Europe-based private equity investor. The transaction is expected to 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 Cox & Kings.
Cox & Kings’ 49 per cent equity stake in Malvern will be accounted for as an investment in associate company, with its proportionate share of profit/loss reflected in Cox & Kings’ P&L from FY2017 onwards. The goodwill write-off on sale of Superbreak is ~GBP 71.4 million.
