The two companies signed an agreement on Wednesday.
Holidaybreak's shareholders will get 432.1 pence per share in cash, a premium of 35.5 per cent to the closing price of the company's shares on July 22.
"We think we have got a fair price," said Cox & Kings executive director Peter Kerkar.
Cox & Kings -- world's oldest travel company, dating back to 1758, was itself a British company before it was bought by its present promoters hopes to conclude the deal by September. In the event of the deal falling apart because of a rival bid or due to shareholders' rejection, Cox & Kings will get 1 per cent of the deal price.
Nearly 32 per cent Holidaybreak shareholders have already approved the deal. It requires approval from 75 per cent shareholders.
After this, the agreement will be sealed by a court.
The acquisition will give Cox & Kings a foothold in camping, adventure tourism and student tour segments.
"It's an all-cash deal. We have tied up the funds. This includes Rs 900 crore (Rs 9 billion) from our cash balance.
"The rest will come from dollar-denominated debt from Axis Bank," said Cox & Kings CFO Anil Khandelwal.
This is its ninth acquisition in the travel sector. It is making this acquisition through its UK-based subsidiary.
Kerkar said Cox & Kings would use the expertise of Holidaybreak to promote education tours in India.
"We believe education tours are the way forward," he said.
"We are expecting a two-way synergy," he said, adding that Holidaybreak can expect to get good business from Indian travellers who tend to go abroad in April-June, which is a lean season in Europe.
"The acquisition of Holidaybreak marks an exciting new step for Cox & Kings in its development. We have been growing rapidly and have significantly expanded our outbound tour operations from India and Oceania.
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