Yes Bank gets 18.6% stake in Cox & Kings

MUMBAI: Yes Bank has acquired 18.6% stake in defaulting travel company Cox & Kings and 30% stake in its affiliate Ezeego1 Travel & Tours. The shares were acquired by the lender upon invocation of pledged shares.
In a statement to the exchange, Yes Bank said that it has acquired 3.3 crore shares of Cox & Kings. Given the last traded price of Rs 13.35, the value of the holding amounts to Rs 44 crore. Ezeego1 is not listed.
According to industry persons, the bank will in all likelihood find a buyer for the strategic stake as part of the recovery process. Yes Bank has not disclosed its total loan exposure to the defaulting company.
Yes Bank shares rose nearly 10% to Rs 96 after the lender clarified that it is exploring various means of raising capital in response to news that private equity investors are set to pick up $350 million in the bank. Earlier this month, CARE ratings had downgraded Cox & Kings to default after the company defaulted on Rs 135 crore of commercial paper. CARE had a rating on Rs 1,750-crore long-term debt and Rs 1,685-crore commercial paper.
Cox & Kings is promoted by Peter Kerkar’s son of Ajit Kerkar, the former chairman of Indian Hotels, which runs the Taj group of hotels. The travel company had made large investments globally acquiring travel businesses in the UK. On Wednesday, the company informed the stock exchanges that the Bombay high court has allowed IATA to encash a bank guarantee of Rs 24.3 crore issued by the company.
^{[1][2][3][4][5]}

References

1. ^{^} Yes Bank (timesofindia.indiatimes.com)
2. ^{^} Ezeego1 (timesofindia.indiatimes.com)
3. ^{^} CARE ratings (timesofindia.indiatimes.com)
4. ^{^} Bombay high court (timesofindia.indiatimes.com)
5. ^{^} IATA (timesofindia.indiatimes.com)

from Business News: Latest News on Business, Stock Markets, Financial News, India Business & World Business News https://ift.tt/2Ya887U