Thomas Cook to acquire 74% in Ikya for Rs 256 cr

Written by fe Bureau | Mumbai | Updated: Feb 7 2013, 09:19am hrs
Thomas Cook (India) (TCIL) on Wednesday said it will acquire 74% stake in Bangalore-based human resource services company Ikya for a consideration of R256 crore.

The transaction is subject to regulatory approvals. The company would be convening an extraordinary general meeting on March 12 to transact the said businesses, it said in a filing on the BSE. The acquisition would expand TCILs portfolio of service-related businesses and mark its entry into the HR. Share of TCIL rose 2.60% to end at R55.25 on the BSE on Wednesday.

In a filing to the BSE, TCIL said that Ikya will operate as a standalone independently managed entity supervised by it with the assistance of its new parent Fairbridge, a wholly-owned step-down subsidiary of Toronto-based financial services holding company Fairfax Financial Holdings (Fairfax).

In a separate filing, TCIL said it would issue 3.6 crore equity shares to institutional buyers to dilute promoter holding in accordance with regulatory requirement. Sebi had set a June deadline for Indian companies to reduce their promoter holding to 75% or below. As on December, promoter holding in TCIL stands at 87.10%.

Madhavan Menon, MD, TCIL, told FE, "This is not a diversification but delivery of TCILs strategic intent to invest in partnerships that broaden our platform to increase shareholder value. The funding will be via a combination of internal accruals and institutional placement programme.