Kuoni accepts US$1.3bn takeover bid
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Kuoni Group has accepted a takeover bid from EQT, the Swedish private equity company.
The offer is worth CHF370 (approx. US$362) per share, valuing the Swiss travel company at around US$1.3 billion. Kuoni’s board of directors has said it “unanimously” supports the bid.
“Over the last months the board has very carefully analysed all strategic options in order to secure the successful implementation of Kuoni Group’s strategy,” said Heinz Karrer, Kuoni’s chairman.
“As a result… the board concluded unanimously that taking Kuoni private and handing over the responsibility for the group to an internationally renowned new owner with comprehensive experience in managing and further developing industry leaders, with the necessary financial strengths and with a long term perspective would be the ideal solution to the benefit of all stakeholders. EQT fulfils all these requirements in the best possible way.”
Founded by Investor AB, Scandinavia’s largest industrial holding group, EQT currently has assets worth approximately US$29bn.
The company says it plans to “enable the Kuoni Group to strengthen the market position of its businesses, both through organic growth and acquisitions, and to further increase the attractiveness of the Kuoni Group for clients, business partners and employees”.
Kuoni’s current CEO, Zubin Karkaria, will continue to lead the company.
“With the new owners we will be able to accelerate the implementation of our strategy,” Karkaria said. “Investments in technology and supporting acquisition opportunities give the Kuoni Group an excellent platform to build further on its leadership positions in travel industry services. EQT has an impressive track record of growing companies. With access to their experience and network in both the travel and tech industries, we will be able to accelerate the implementation of Kuoni’s strategy.”
Subject to successful completion of the offer, Kuoni will delist its shares from the SIX Swiss Exchange.
Kuoni has been operating for 110 years, but the last 12 months have marked arguably the biggest upheaval in the company’s history. Last year the company exited the tour operating business, selling its operations to DER Touristik and Thomas Cook India, and it recently announced the sale of its Zurich head office.
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