Subscribe & Follow

Advertise your job vacancies

Jobs

Visitor Experience Consultant Cape Town
Digital Marketing and Content Designer Johannesburg
Sales Executive - Junior to Intermediate Johannesburg
Group Travel Account Manager South Africa

Cullinan buys Imperial's tourism business

19 Jul 2013

Logistics group Imperial Holdings on Thursday (18 July) announced the sale of its tourism business to Cullinan Holdings but indicated it was not quite ready to exit the tourism sector so it would get 10% of Cullinan in the process.

"The tourism division had become sub-scale in the context of Imperial Holdings‚ and consequently the group has agreed to dispose of its travel‚ tourism and coach charter businesses to Cullinan‚ subject to approval by the Competition Commission‚" Imperial said in a statement.

Mohammed Akoojee‚ executive head for investor relations at Imperial Holdings‚ said even though tourism was a small section of the Imperial group's revenue‚ it wanted to keep a holding in tourism.

"We want to keep our options open. That is why we are buying a 10% stake. Tourism is worth between R400m to R500m a year to Imperial in revenue terms, which in terms of total group revenue for of R90bn is very small. However, while tourism is not part of our main focus it is worth being in the sector‚" Akoojee said.

Business sold

The tourism business units being sold comprise Springbok Atlas Tours and Safaris‚ Springbok Atlas Charter‚ Grosvenor Tours‚ Eastgate Safaris and 74.9% of Silverton Travel.

Springbok Atlas Tours is an inbound tour operator based in SA‚ which focuses on consolidating and selling packaged tours to a wide range of international customers. Grosvenor Tours‚ is also inbound tour operator that focuses on luxury travel to Africa and includes group incentives‚ events and conference services.

Eastgate Safaris offers safaris‚ transfers and excursions in the northern Kruger National Park and surrounding areas while Silverton Travel‚ which trades as Edusport‚ is a sports and events tour operator.

Springbok Atlas Charter operates a coach transportation business across SA and Namibia.

Cullinan will pay for the purchase of Imperial's tourism businesses through the issue of 81‚818‚181 shares. The 60-day volume weighted average price for Cullinan is R1.26 per share.

Cullinan's Michael Tollman said the transaction had various key benefits for Cullinan. "These travel businesses are an excellent fit for travel specialist Cullinan Holdings and we believe that these brands will benefit from being part of the travel focused Cullinan Group.

"Assuming current market conditions remain‚ these businesses will contribute to profitability of Cullinan in the future‚ and will allow for the expansion of our African footprint‚" he said.

Source: Business Day via I-Net Bridge

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za