The parent group of Emirates Airlines has bought a 19% stake in travel management company Hogg Robinson Group (HRG) in a move that could prepare the way for an eventual takeover.
Emirates Group said it had no intention of making a formal bid for HRG and intended to be a long-term investor, but it has reserved the right to undertake a future buy-out.
The stake was purchased by Emirates-owned Dnata, a corporate travel partner of HRG in the Middle East. Dnata also provides ground handling, cargo and air travel services. The stake is worth £28 million.
Emirates is owned by the Dubai government and reported a profit of $1.4 billion last year. HRG reported profits of £25 million in the last financial year on a turnover of £332 million. It issued a profits warning in March.
HRG chief executive David Radcliffe said: “Dnata has made this move to be a long-term investor in HRG.”
This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.