United Arab Emirates-based Dnata today acquired a 19.99 percent stake in its partner Hogg Robinson Group, surpassing BCD owner John Fentener van Vlissingen's investment firm as the company's largest single shareholder. Dnata, one of the largest travel management companies in the Middle East, is part of the travel services conglomerate the Emirates Group and is HRG's main representative in the region. Dnata in a statement said, "it has no intention of making a formal offer for Hogg Robinson. Dnata intends to be a long-term, supportive shareholder in Hogg Robinson."
In two rounds of share buys, more than 61 million shares were purchased at more than 40 pence. In April, van Vlissingen's Beverweerd Investments became the largest single shareholder in Hogg Robinson and now owns 16.15 percent
(BTNonline, May 12).
In today's London Stock Exchange filing, Dnata said that in the event of a takeover or merger, "Dnata reserves the right to announce an offer or possible offer or make or participate in an offer or possible offer for Hogg Robinson and/or take any other action which would otherwise be restricted under Rule 2.8 of the City Code within the next six months in the event that an agreement or recommendation from the Board of Hogg Robinson is forthcoming; or there is an announcement by a third party of a possible offer or a firm intention to make an offer for Hogg Robinson or Hogg Robinson announces that it has received an approach in relation to a possible offer from a third party."
HRG CEO David Radcliffe said he has not had contact with Dnata about their investment strategy and it's "far too early" to comment on how the buy will affect the company. "There is little I can say," Radcliffe told Business Travel News. "I only found out about it this afternoon myself. We've had a good working relationship with them for many years. Having a partner on board as a shareholder can only be good news for us."
Dnata Agencies senior vice president Iain Andrew sits on the travel management company's international board and the company is involved in a number of technology and strategic developments, according to Radcliffe.