Cox & Kings suitor for PGL owner

Upmarket tour operator Cox & Kings was yesterday revealed as the potential suitor for Holidaybreak, the owner of Explore and school trips business PGL.

The Mumbai-listed firm, which dates from 1758, is in talks with Holidaybreak’s board after proposing 432.1p a share for the Cheshire-based company, valuing the business at just over £300m.

Holidaybreak disclosed the identity of its potential bidder a day after revealing to the stock market that it had received a takeover approach.

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The proposed offer price came in well above the City’s minimum expectations of 400p a share.

Holidaybreak’s shares have been under pressure in recent weeks after the company warned in May that its adventure holidays arm faced a £1.5m hit to annual profits due to cancellations and lower bookings caused by the uprisings in the Middle East and North Africa.

Holidaybreak has also been affected by tougher trading conditions in its Superbreak hotels division.

However, its education arm – the biggest operation and much less exposed to discretionary spending – continues to trade well.

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The company’s PGL UK centres will be accommodating around 6,000 schools at sites including Liddington in Wiltshire and Windmill Hill on the Sussex Downs during this year.

Holidaybreak’s York-based hotel breaks division was hit by bad weather in December 2010 and has also been affected by the harsh consumer environment.

Cox & Kings is the world’s longest established travel company and focuses on high-end and tailor-made holidays.

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