Europe?s second-largest travel company, Thomas Cook Group plc, on Friday said it is buying back Indian subsidiary Thomas Cook India Ltd (TCIL), by acquiring up to 74.9% stake in the company from Dubai Financial Group LLC (DFG) for around Rs 1,312 crore.
TCIL was earlier controlled by Thomas Cook AG, which sold its 60% stake in the company in 2006 to DFG. In a private transaction with DFG, Thomas Cook Group will acquire 54.9% at Rs 107 a share, and will launch an open offer for 20% at the same price.
According to TCIL, the country’s second-largest tour operator, the travel market is expanding by 15% a year in India. Udayan Bose, chairman, TCIL, said, ?Our relative marketshares in both the financial services and travel operator businesses have grown substantially. Set against the backdrop of a rapidly growing tourist market, I believe the business is in great shape for the future.?
On Friday, TCIL shares closed at Rs 88.50 on the BSE, up 4.98% in a falling market.
Thomas Cook will also pay the equivalent of Rs 215 crore to DFG to acquire 100% of its branded business in Egypt and brand licences in 15 Middle Eastern countries.
The transactions are expected to close by end-March, while the mandatory open offer is expected to close at the end of May. Sayanta Basu, CEO, DFG, said, ?We believe we have added strength and value to the business and are very pleased with the returns we have made on our investment.? The group has global sales of 12 billion euros.
