Shares in Holidaybreak soared in value ahead of its acceptance of a takeover bid by Cox & Kings.
The price of Holidaybreak shares on the London Stock Exchange rose 48% between July 1 and the announcement of the deal on July 27.
On the two days preceding the deal it rose 15% and 12%.
The takeover has yet to be agreed by Holidaybreak shareholders, but the company’s board has recommend that they accept it.
Holidaybreak reported it was in talks with Cox & Kings the day before the deal, after having previously revealed that it was the subject of takeover interest. Holidaybreak said then that it was responding to “speculation”.
The Cox & Kings deal prices Holidaybreak at just over 432p per share, valuing the company at £312 million. However, the company’s debt – close to £130 million in its most-recent annual report – means the deal will be worth closer to £440 million.
The takeover will be carried out in the name of Prometheon Holdings (UK), a wholly-owned subsidiary of Cox & Kings.
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