It is reported that travel and holiday company Thomas Cook plans to sell its 77 percent stake in Thomas Cook India as it looks to bring down its mounting debts. Thomas Cook, India would be having a core valuation of around Rs. 1000 – 1200 Cr. The company has a strong market presence – 153 company owned branches apart from preferred sales agents.
As per a statement from Sam Weihagen, Chief Executive of Thomas Cook – “Following a number of unsolicited informal expressions of interest, we have decided to seek formal offers for our stake in Thomas Cook India. If the offers are attractive, then we will consider selling our stake and using the proceeds to continue to strengthen the group’s balance sheet”.
The company has been hit hard by tough trading conditions, especially in Britain, because of tough economic conditions. Thomas Cook had issued three profit warnings last year, culminating in the departure of Chief Executive Manny Fontenla-Novoa in August 2011.
Thomas Cook (India) Ltd. is the largest integrated Travel and Travel related Financial Services Company in India offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance. The Company launched its Indian operations in 1881. Presently the company employs about 2500 employees in India.
Thomas Cook Group plc is the major force in holiday and leisure travel services. The company has been in existence for over the 170 years (established in 1841) . Globally the company employs over 18,000 people in the UK and at their overseas resorts & offices.
Picture Courtesy: Screenshot of TCIL stock price from Google Finance
– Research Team