Thomas Cook AG to make open offer for 20% more in Indian arm

New Delhi, Aug 10: Travel major Thomas Cook India (TCI) has said that its German parent Thomas Cook AG will soon make an open offer to public shareholders to acquire a further 20 per cent stake in the Indian company.

When contacted, chief executive officer of TCI Aswini Kakkar said over the phone from Mumbai, “Yes, Thomas Cook AG plans to make an open offer to increase its stake in the Indian company. They have appointed Morgan Stanley as advisors to the offer”.

While he declined to comment on the price and other details of the offer, Mr Kakkar said this offer would take up the stake of the German parent to 60 per cent in the Indian company.

“Thomas Cook AG holds 40 per cent stake in the Indian company through its subsidiary Thomas Cook Overseas. The open offer proposed to raise its stake to majority 60 per cent,” Mr Kakkar said.
While State Bank of India holds a 15-per cent stake in the travel and tours major, the remaining 45 per cent stake is widely held by the public.

Earlier, the German parent had reportedly approached Securities and Exchange Board of India (Sebi) asking for exemption from making the offer, but Sebi asked it to get the approval of Indian subsidiary’s shareholders.

This approval was reportedly struck down by the shareholders at the recently held extraordinary general meeting (EGM), hence making it mandatory for the company to make the offer.

Thomas Cook first set up its office in Mumbai in 1881 and now has 47 offices across 14 Indian cities.

-- PTI