Swiss firm acquires SITA Travels

By Our Special Correspondent

NEW DELHI, MARCH 24 One of India's largest travel firm, SITA World Travels, has been taken over by the Swiss Travel group, Kuoni Travels. Kuoni has acquired a 100 per cent equity in SITA and the new company will now be Kuoni Travel Holding Limited. The arrangement will come into being from April 1.

With this, the process of take-over of Indian travel companies has begun. There is strong speculation that Travel Corporation of India and Cox and Kings are next in line for being bought over by multinational companies.

Announcing the take-over of SITA at a joint press conference here today, the CEO of Kuoni Travel Holding, Mr. Lerch Hans declined to give away the acquisition price. Kuoni has a turnover of Sw Fr. 3.4 billion and recorded a profit of 27 per cent last year. SITA Travels has a turnover of Rs. 250 crores.

Mr. Inder Sharma, Chairman of SITA, said the partnership came into being to grow the market.

In 1997, Kuoni Travel Holding had acquired SOTC private limited. In the new arrangement, Kuoni Travel would be the holding company with three divisions- the SOTC, the SITA Inbound and SITA Travel (Corporate and Business) Travel. There are plans for disinvestment of 30 per cent with paid up capital of Rs. 10 crores. The company would make the public offering at an indicative price of Rs. 400 to 600 per share, the Kuoni Travel India Chairman and Managing Director, Mr. Ranjit Malkani said.

The new setup does not include SITA Hotels. SITA-Lanka and SITA- Nepal would be Kuoni shareholders.

Following the takeover, the existing board of directors of SITA Travels resigned and have been replaced with a five-member board with Mr. Lerch as CEO, Mr. Max Katz as Chief Financial Officer, Mr. Malkani as CEO Kuoni-SITA India, and Mr. Arjun Sharma and Ms. Neeraj Ghei as Chief Operating Officers. Mr. Inder Sharma will be the Chairman Emeritus. About 30 executives of SITA have been appointed advisers, till the new owner finds a slot for them.

Send this article to Friends by E-Mail

Section  : Business
Previous : India's rising share in world FDI flows
Next     : Infosys rallies in low key activity