Citi Venture Capital to invest $125M in Prometheon

The private equity arm of Citigroup is set to invest $125 million, or Rs 700 crore, in Prometheon.

Citi Venture Capital's deal with Prometheon, a special purpose vehicle created by holiday and travel firm Cox & Kings for the acquisition of UK's Holidaybreak in 2011, will help the company reduce its debt.

Cox & Kings shares have fallen 6.5% so far this year compared with a 17% gain for the Sensex on investor fears that debt will squeeze cash flows.

Cox & Kings and Citi Venture Capital declined to comment on the matter. People close to the transaction said that Citi could end up owning a minority stake in the company.

Mumbai-based Cox & Kings had raised a debt of almost 311 million (Rs 2,250 crore) to buy Holidaybreak, increasing its total gross debt to about Rs 4,200 crore. Cox & King's net debt now is about Rs 3,600 crore.

For more.

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