Indian travel and tours company Cox & Kings Ltd (BOM:533144) announced today that CVCI Private Equity, part of US financial services giant Citigroup Inc (NYSE:C), has agreed to pour about USD137.7m (EUR110.4m) into its British unit Prometheon Holdings (UK) Ltd.
The binding deal comes after the board of the Indian company approved in in May plans to raise further capital of up to USD140m through sale of Prometheon stock. Today, Cox & Kings said it will use the money mainly to retire some of the debt raised by Prometheon as part of its takeover of sector player Holidaybreak Plc in July 2011.
The newly-agreed transaction is subject to obtaining certain regulatory nods and on the fulfillment of customary conditions. Cox & Kings did not say when it expects to close it.
In June, the Economic Times quoted informed people as saying that the Indian company was holding talks with private equity funds like KKR & Co LP (NYSE:KKR), Bain Capital LLC, The Carlyle Group LP (NASDAQ:CG) and TPG Capital LP regarding the potential disposal of a minority stake in its British subsidiary. The newspaper’s list, however, did not include Citi’s venture capital arm.