Cox & Kings, one of India's oldest travel company is in talks to buy Holidaybreak, the UK-based adventure travel firm, Sky News yesterday reported.

Stock of Holidaybreak soared by more than 18 per cent - the highest in three years, after the Northwich, Cheshire-based travel company yesterday said that it was in discussions with a third party which may or may not lead to an offer.

The paper said that an agreed all-cash takeover offer, valuing London-listed Holidaybreak at £300 million or £450 million including debt, is likely to be announced within days.

Holidaybreak is an education and activity travel group with market leading positions in the UK and other major European markets. It has over 15 long-established and widely recognised brands with leading niche positions in the travel sector such as camping brands Eurocamp and Keycamp, adventure holidays business including the Explore brand, and the Superbreaks hotel breaks division.

Holidaybreak was founded by Alan Goulding in 1973 as Eurocamp Travel Limited, a family- run business offering camping holidays in Brittany, France. The business was sold in 1981 to London based retail group, Combined English Stores.

Eurocamp plc was floated on the London Stock Exchange in 1991 and following the 1995 merger with Superbreak, the company changed its name to Holidaybreak in 1998.

But in line with other European travel firms, Holidaybreak posted a wider first-half pretax loss in May as consumers reigned in spending coupled with a harsh winter.

The company reported a £19.2 million pre-tax loss for the six months to 31 March, compared with £17.7 million loss the previous year.

Mumbai-based Cox and Kings is looking at small global buys to consolidate its position in the international market by planning to enter newer markets and geographies through acquisitions that would help it expand its portfolio.

In June 2010, Cox and Kings sought shareholder's nod to raise up to Rs2,000 crore through debt and equity to fund its domestic and overseas acquisitions as it gears up to meet a resurgence in the travel industry after two years of slump bought on by the recession. (See:  Cox & Kings plans Rs2,000-crore acquisition war-chest)

The company's board, in April 2011 approved plans to raise up to Rs1,500 crore through issue of fresh shares or other instruments and also approved increasing borrowing limit to Rs1,500 crore from the current Rs1,000 crore.

Cox & Kings last month increased its stake to become a majority shareholder in the US travel management company RADIUS in order to strengthen its hold in corporate travel. 

Cox and Kings, the oldest travel company in the world, dating back to 1758,  competes in this segment with long standing players like American Express and Thomas Cook.

It is trying to increase revenues from corporate travel, which currently contributes around 4 per cent of its annual revenues.

Cox and Kings, which is present in 20 countries, has made investments in other international travel companies like Portman Travel of UK and Travel and Transport in the US.

Its Indian operations contributed 48 per cent of its revenues in 2011, while its operations in the UK, Australia, Japan, Dubai and others contribute the rest with the leisure travel segment contributing more than 90 per cent of its consolidated revenues.