Kuoni India is planning to buyout International Travel House (ITH) and P&O Travel India. ITH is the travel wing of ITC Ltd, while P&O is the Indian arm of the UK-based Princess Cruises Plc.
After getting in-principle approvals from the company board of directors, Kuoni has appointed KPMG to overlook both the acquisitions.
Sources say that both the acquisitions would be done under the business travel segment. A final decision, however, is likely to be taken in the next financial year of the company, sources added.
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Though the valuation of both the companies have not been decided yet, Kuoni has cash reserves of Rs 100 crore and more can be raised later, if required, company officials said.
Kuoni Travel group chief executive officer and chairman Ranjit Malkani said that Kuoni India was in the process of evaluating various companies in all segments including business travel but no understanding has yet been reached with any of the companies.
ITH managing director Anil Bhandari said that the company has not received any such proposal. Officials from P&O Travel India, which is a 61:39 joint venture between P&O Princess Cruises Plc of the UK and the Sheths of Gesco said that Kuoni has been in talks with one of the partners.
Kuoni already has a 50:50 joint venture with P&O in Hong Kong, Bangkok and Singapore. Kuoni officials said that the acquisitions would help synergise the operations of the company in India.
Last year, Kuoni India had acquired Tour Club Pvt Ltd in an "earn out" deal wherein the final price of the acquisition was to depend upon the profits generated by the company within the next three-five years.
The acquisition of Tour club, which provides incoming services to tourists from the Middle east and Africa, was done in the inbound segment.