NewsCorporate ActionsLGT Business Connextions Limited Expands Travel Portfolio with Strategic AcquisitionsLGT Business Connextions Limited Expands Travel Portfolio with Strategic Acquisitions
LGT Business Connextions Limited (LGTBCL) is set to acquire majority stakes in Holiday One Private Limited and Travflix Tours Private Limited for up to Rs. 50 lakhs and Rs. 15 lakhs respectively. The company also plans to incorporate a new subsidiary with a 60% stake. These cash transactions aim to strengthen LGTBCL's position in the travel sector, particularly in luxury holiday, MICE, and trade fair segments. The Board has approved these strategic moves along with the unaudited financial results for the half year ended September 30.
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LGT Business Connextions Limited (LGTBCL) has announced significant strategic moves to strengthen its position in the travel sector. The company's Board of Directors has approved the acquisition of majority stakes in two travel companies and the incorporation of a new subsidiary, as disclosed in a recent regulatory filing.
Key Acquisitions
LGTBCL plans to acquire majority shareholdings in two travel companies:
- Holiday One Private Limited: A Hyderabad-based premium travel company specializing in luxury holiday and leisure travel.
- Travflix Tours Private Limited: A Mumbai-based travel management company focusing on trade fairs, MICE (Meetings, Incentives, Conferences, and Exhibitions), and holiday travel services.
Financial Details of Acquisitions
| Company | Acquisition Cost | Recent Financial Performance |
|---|---|---|
| Holiday One Private Limited | Not exceeding Rs. 50.00 lakhs | - Approx. Rs. 2.00 crores (Apr-Sep) |
- Rs. 4.13 crores | | Travflix Tours Private Limited | Not exceeding Rs. 15.00 lakhs | Approx. Rs. 60.00 lakhs |
Both acquisitions will be cash transactions and do not involve any related party transactions.
Strategic Rationale
The acquisitions aim to supplement LGTBCL's growth and integrate businesses to better serve clients. Both target companies operate in the same line of business as LGTBCL, focusing on tours and travel services.
New Subsidiary
In addition to these acquisitions, LGTBCL's Board has approved the incorporation of a new subsidiary in India. The company plans to invest in a 60% stake in this newly incorporated entity.
Financial Results
The Board has also approved the unaudited financial results for the half year ended September 30. However, specific details of these results were not provided in the regulatory filing.
Management Commentary
Wilfred Selvaraj, Managing Director of LGT Business Connextions Limited, signed off on the regulatory filings, indicating the company's commitment to these strategic moves.
Market Impact
These strategic decisions may potentially enhance LGTBCL's market presence in the travel sector, particularly in the premium and MICE segments. The acquisitions could provide LGTBCL with expanded capabilities and a broader customer base in the travel industry.
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