Mumbai: Cox and Kings Ltd which received shareholder approval to raise up to Rs2000 crore for global acquisitions, is “actively working” on multiple buys in U.S., Europe and China, a senior official said.
“As we speak we are actively working on transactions very closely,” chief financial officer Anil Khandelwal told Reuters on Monday.
The firm, the parent of UK-based unlisted Cox and Kings, gets around half its overall revenues from its international operations and is looking at more overseas buys to drive future earnings and growth.
The company had received the approval to raise funds for future buys last month. Cox and Kings had said in June the equity portion can be raised by way of local or international offerings.
Its most recent acquisition was of Australia-based MyPlanet Australia Pty Ltd & Bentours International Pty Ltd from a unit of TUI Travel Plc, last December.
Khandelwal said the firm was expecting to close a deal by this fiscal itself, possibly as early as December.
The firm which has subsidiaries in US, UK, Australia, New Zealand, Japan and Singapore, is looking to acquire stake in a Chinese travel firm to grow in that region, Khandelwal said.
“In China, we are not going to do a 100% acquisition, we are looking at having a small equity stake,” he said.
It has got approval from shareholders to raise upto Rs1000 Crore in equity and an equal amount as debt, but the exact mix can change, he said.
Earlier on Monday Cox and Kings reported a 30% rise in April-June standalone net profit to Rs26.47 crore as income from operations rose to Rs78.64 crore from Rs61.07 crore.
“Growth this season was particularly strong in our India outbound,” mainly to developed economies like US, Europe and Australia, executive director Peter Kerkar said.
However, its consolidated net profit fell to Rs25.18 crore compared with Rs40.58 crore as a loss due to foreign exchange fluctuations offset a 24% rise in income from operations to Rs123crore.
At 3:07 p.m., Cox and Kings shares were up 1.88% at Rs525.75 in a firm Mumbai market.