TBO Tek subsidiary to acquire Classic Vacations for $125m

TBO Tek Limited announced that its wholly-owned step-down subsidiary, TBO LLC, has approved the acquisition of 100% ownership interest in Classic Vacations LLC for up to $125,000,000. This strategic move aims to expand TBO Tek's presence in the US luxury travel market, leveraging Classic Vacations' network of high-value travel advisors and premium supply. The acquisition is expected to be completed by the first week of October 2025.

To facilitate the acquisition, TBO Tek Limited will extend an inter-corporate loan of up to INR 3,500,000,000 to Tek Travels DMCC, its wholly-owned material subsidiary. This loan will aid TBO LLC in funding the acquisition. Additionally, TBO Tek has approved issuing a letter of comfort and a corporate guarantee up to $77,000,000 in favor of Catalyst Trusteeship Limited to back credit facilities from Standard Chartered Bank for TBO LLC.

Classic Vacations LLC reported net sales of $111,042,000 for the year ended December 31, 2024, and operates primarily in the United States.