Cox & Kings plans to raise $140 mn; posts 73 per cent fall in Q4 net

Travel services provider Cox & Kings plans to mop up to $140 million from an institutional investor for its wholly owned subsidiary Prometheon Holdings (UK) Ltd.

The Board of Directors of the company at meeting held on May 15, 2012, have considered and approved the investment of $140 million by an institutional investor, Cox & Kings said in a regulatory filing.

The prospective investor will get a minority stake in Prometheon Holdings (UK) against the fresh capital issued to the company, Cox an Kings said.

"The investment is subject to receipt of all regulatory approvals, if required, and execution of definitive agreements," the filing added.

Shares of the company were trading at Rs 141.85, down 2.24 per cent on the BSE at 1245 hours on Wednesday.

Meanwhile, Cox & Kings posted a 72.70 per cent decline in net profit for the quarter ended March 31 at Rs 7.06 crore, mainly on losses from currency fluctuation.

The company's net profit for the three months ended March 31, 2011 was Rs 25.87 crore, it said in a filing to the BSE.

During the quarter, the firm's total expenses increased to Rs 54.53 crore, against Rs 27.42 crore in the corresponding period last fiscal.

Loss from currency exchange fluctuation during the quarter was Rs 14.63 crore, against Rs 8.32 crore in the fourth quarter of 2010-11, it said.