EQT's Takeover Of Kuoni Clears Shareholder Hurdle

Private equity group EQT has secured nearly 80 percent of the voting rights in Swiss travel group Kuoni, clearing a major hurdle for its CHF1.4 billion Swiss franc (USD$1.45 billion) takeover offer for listed shares.

After an initial acceptance period for Kuoni's listed "B" shares ended on Wednesday, EQT held 79.6 percent of voting rights and 74.6 percent of Kuoni's share capital including a block of unlisted "A" shares held by the Kuoni and Hugentobler Foundation, which has agreed to a share swap.

This easily surpassed the thresholds in the offer and paved the way for EQT to wrap up the deal by May 19, it said.

EQT had said last week its 370 franc per share offer for B shares remained intact despite a regulator's ruling questioning terms of a parallel share swap with the foundation.

EQT wants to delist the travel group, which has been hit by competition from online travel companies and unrest in popular tourist destinations, to implement a new growth strategy.

This entails "investing in new services, strengthening its operational platform and providing Kuoni with access to capital to pursue strategically important acquisitions".