Cox & Kings sells a division of its UK unit for Rs 892 crore

MUMBAI: Cox & Kings on Monday said it has sold one unit of its UK subsidiary Holidaybreak to France’s Homair Vacances for Rs 892 crore (£89.20 million). Under the deal, Homair will pay £85.5 million in cash for the Holidaybreak’s camping division. The remaining payment will be paid when the buyer gets a tax refund.

Cox & Kings completed the purchase of Holidaybreak in September 2011 for £323.43 million, according to the company’s latest annual report. “This was a non-core business division for us, although it was a leader in its segment and making money for Holidaybreak,” said Cox & Kings CFO Anil Khandelwal, adding there isn’t enough demand for camping trips among Indians.

He added proceeds from the sale shall be entirely used to retire the company’s debt which currently stands at Rs 4,200 crore.