Canada’s Fairfax Financial Holdings, which has purchased Thomas Cook Group’s 76.81 per cent stake Thomas Cook India (TCIL), for Rs 817.4 crore, will launch an open offer for the remaining stake at Rs 65.48 a share.
This will be a 31 per cent premium to the sale price agreed by Thomas Cook and a 7 per cent premium to TCIL’s share price on the BSE on Monday, a day before the announcement.
According to the new takeover code, companies need to make an open offer for 26 per cent of the company’s outstanding shares, once the open offer is triggered by crossing the 25 per cent threshold.
As such, should all minority shareholders tender their shares in the open offer, the public holding would be reduced to zero.
“It is difficult to say whether the company will be delisted,” TCIL’s managing director Madhavan Menon said. “The structure of the deal is yet to be completed.”
The price, which will benefit minority shareholders, is in line with market watchdog Sebi’s norms which stipulate that the open offer price should be the average share price of the stock for the past 26 weeks. In a statement to the BSE, TCIL said it will announce details of the open offer on May 28.