The board of directors Kuoni Group, a leading global travel services company, has supported the public tender takeover offer by private equity company EQT.

EQT has announced an all cash public tender offer for all publicly held registered shares of Kuoni Travel Holding for a price of CHF370 ($362.27) per share. The offer represents a premium of 34.1 per cent to the current 60-day volume weighted average share price and a 60 per cent premium to the VWAP before January 5, when Kuoni confirmed early stage discussions with potential bidders,  a statement said.

Kuoni Group CEO Zubin Karkaria and current management team continue to lead the company into the future, it said.

The unanimous decision of Kuoni’s board follows a comprehensive review and assessment of all strategic options to create value for shareholders and to further the interests of the company.

The board believes that a take-private of the Kuoni Group under the ownership of private equity company EQT offers highly attractive benefits for its business partners and employees. The transaction enables Kuoni Group to further develop its position as a leading, focused and global travel services provider by investing in technology, in its enhanced service portfolio and in the acquisition of other businesses, it said.
 
Kuoni has entered into a definitive transaction agreement with an affiliate of EQT, which will launch a public tender offer for CHF 370 in cash per registered B share. The planned transaction is to be implemented by a voluntary public tender offer.
Today’s announcement follows a competitive process with EQT as well as a number of other interested parties over the course of several weeks, said the statement.
 
As long-term investor, EQT will strengthen and expand Kuoni Group’s global business activities.

EQT is one of Europe’s leading private equity houses founded by Investor AB, Scandinavia’s largest industrial holding group and part of the Wallenberg Group. EQT is committed to invest in the continued development of the Kuoni Group in order to enable the company to grow and strengthen its position as a leading service provider to the global travel industry and governments and to further increase its profitability.

The operational measures announced in November 2015 to accelerate the implementation of the defined strategy will be carried out as planned in 2016, the statement said.

Heinz Karrer, chairman of Kuoni Group’s board, said: “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. As a result of this detailed and comprehensive analysis and a competitive process, 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.”
 
Karkaria said: “We welcome EQT’s investment in the Kuoni Group, which underlines the attractiveness of our business activities. With the new owners we will be able to accelerate the implementation of our strategy. 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.” - TradeArabia News Service