Gulf company becomes largest HRG shareholder

A company based in the United Arab Emirates has become the largest shareholder in the UK travel management company Hogg Robinson Group (HRG).

DNATA, a member of the Emirates Group, bought 61,366,000 1p ordinary shares in the company in two sorties onto the London Stock Exchange (LSE) last Friday (June 27).

The purchases give DNATA a 19.9% stake in HRG.

The sellers were institutional investors, F&C Asset Management and Aviva plc.

DNATA is one of the largest travel management companies in the Middle East and is HRG's main representative in the region.

In its first move, DNATA bought 57,341,420 shares, giving it an 18.69% stake.

Later the same day, it said it had bought a further 4,024,580 shares, increasing its holding to 19.9%.

Previously HRG's largest single shareholder had been Beverweerd Investments, a Dutch company linked to rival TMCTravel Management Company: An agency which manages business travel for a company. BCD Travel, which has built up a 13.14% stake over five months to the end of April this year.

DNATA, in a statement to the LSE, said its newly acquired shares were for "investment purposes" and comprised its total holding in HRG. 

It added: "DNATA confirms that it has no current intention of making a formal offer for Hogg Robinson.

"DNATA intends to be a  long term, supportive shareholder in Hogg Robinson."

But, under Stock Ewchange rules, it reserved its rights to make a bid if circumstances changed, including if another company made an offer.

David Radcliffe, HRG's ceo, said: "We have worked successfully with DNATA for many years and welcome them as a long term supportive shareholder in HRG."

After the DNATA purchases, HRG shares rose and peaked at 50p on Monday (June 30) but later dropped backed to 43.75p, the price before DNATA's move.