Shares in Holidaybreak soared in value ahead of its acceptance of a takeover bid by Cox & Kings.
The price of Holidaybreak shares on the London Stock Exchange rose 48% between July 1 and the announcement of the deal on July 27.
On the two days preceding the deal it rose 15% and 12%.
The takeover has yet to be agreed by Holidaybreak shareholders, but the company’s board has recommend that they accept it.
Holidaybreak reported it was in talks with Cox & Kings the day before the deal, after having previously revealed that it was the subject of takeover interest. Holidaybreak said then that it was responding to “speculation”.
The Cox & Kings deal prices Holidaybreak at just over 432p per share, valuing the company at £312 million. However, the company’s debt – close to £130 million in its most-recent annual report – means the deal will be worth closer to £440 million.
The takeover will be carried out in the name of Prometheon Holdings (UK), a wholly-owned subsidiary of Cox & Kings.
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.