Thomas Cook Plc has intiated the formal sale process for it's 77.1% shareholding in Thomas Cook India Ltd to cut down it's debt. Thomas Cook India has a marketcap of R1142Cr.
According to ET, India's Mercury Travels, Cox & Kings, Chinese firm HNA and foreign exchange group Travelex could be interested in Thomas Cook's Indian business.
Thomas Cook has hired Credit Suisse Group to handle the sale process.
In December, promoters of Thomas Cook (India) pledged their entire stake in the company with Royal Bank of Scotland Group Plc (RBS). The promoters of Thomas Cook Group are renegotiating loans with banks and deferred financial results for the September quarter.
Started in 1881, Thomas Cook India is an integrated travel and travel related financial serices company offering a range of services including foreign exchange, corporate travel, MICE, leisure travel,insurance, visa & product and e-business. The company has services in 216 locations in 78 cities across India, Mauritius & Sri Lanka.
Thomas Cook on BSE
Thomas Cook plunged 92% last year after a squeeze on consumer spending in the UK and political unrest in North Africa reduced holiday bookings. The company has around $1.58Bn of debt on it's books. Last month, a group of banks agreed to provide a $312Mn loan to the tour operator, the company said November 25, giving it time to reorganise its business.
It is also selling 51% stake in Hoteles Y Clubs De Vacaciones (HCV) to Grupo Iberostar in a deal that will see it clear $96.34Mn cash. HCV, which indirectly owns five Spanish hotels and a golf club, is being offloaded with net debts of $29.37Mn – effectively cutting Thomas Cook's debts by $124Mn.
The sale brings proceeds from Thomas Cook's £200m asset disposal programme up to around $316Mn following earlier sales of hotels in Tenerife and Mexico.
Thomas Cook is also expected to unveil a strategic review of its troubled UK business, including closing 200 travel agencies with the loss of around 1,000 jobs. The UK airline fleet is being cut from 41 to 35 planes, while Thomas Cook will also outline plans to offer more exclusive hotel deals and cut costs via such things as paperless ticketing.
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4134
3846
945
4260
973
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17649
42
1677
25526
3005
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1369
459
3151
32715
140
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24632
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 08/02/12 |
Thomas Cook India - Thomas Cook (Exit) |
M&A |
Looking For |
- |
| 21/01/09 |
Thomas Cook - Right Issue |
IPO / Offerings |
|
36.61 |
| 31/03/08 |
Thomas Cook - Thomas Cook Group |
Private Equity |
Thomas Cook Group Plc |
384.00 |
| 26/12/05 |
Thomas Cook - Dubai Financial Group open offer |
Private Equity |
Dubai Financial Group |
16.00 |
| 21/12/05 |
Thomas Cook - Dubai Financial Group TCIL's stake |
Private Equity |
Dubai Financial Group |
92.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 17/05/12 |
Private Equity |
Looking For |
Cox and Kings Limited |
140.00 |
Planned |
| 14/05/12 |
M&A |
Expolanka Holdings Plc |
Akquasun Holidays India Private Limited |
0.93 |
Completed |
| 03/05/12 |
M&A |
MakeMyTrip India Private Limited |
D Pauls Travel and Tours Limited |
- |
Rumor |
| 23/04/12 |
M&A |
MIH Group |
Tek Travels Private Limited |
- |
Completed |
Company |
| Name | Promoters | Office | Competitor | Website |
| Thomas Cook India Limited |
TCIM Limited
Thomas Cook UK Limited |
Thomas Cook Building, Dr D Naoroji Road Fort |
Cox and Kings Limited |
www.thomascook.co.in |
