U.K.-headquartered Thomas Cook Group on Wednesday said that it was launching a formal sale process for its 77.1 per cent stake in Thomas Cook (India) Ltd. (TCIL). According to a statement from Thomas Cook Group, it has received a number of unsolicited informal expressions of interest from third parties to acquire its stake in TCIL and, as a result, has decided to formalise the process.
Sam Weihagen, Chief Executive of Thomas Cook, said, “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.
TCIL is a strong business operating in an attractive market. Both the business and the market are growing and Thomas Cook will only sell its stake if a compelling offer is received,” he said.
TCIL is the largest integrated foreign exchange and travel services company in India and has a heritage in India dating back to 1881. It operates in 70 cities across 153 owned locations, employing over 2,700 staff. It is supported by a strong network of 110 Gold Circle partners and 184 preferred sales agents in over 100 cities throughout India. It also has overseas operations in Mauritius and Sri Lanka.
Shares zoom
Shares of Thomas Cook India on Wednesday soared by 20 per cent to their highest permissible limit for the day.
After a positive opening, the stock zoomed further after the company announced the beginning of a formal sale process for disposal of shares held by the British parent firm. The stock jumped 19.91 per cent to touch its upper circuit limit at Rs.53.90 on the BSE.
Losses widen
AFP reports from London:
The troubled holiday firm posted widening quarterly losses due to weak global economy, restructuring charges, higher fuel costs and ongoing turmoil in North Africa. The company said that operational losses stood at £91 million ($144 million, euro 109 million) in the first quarter of the group's financial year, or three months to December. That compared with a loss of £37 million in the same period of the previous fiscal year. Pre-tax losses stood at £151.7 million, compared with a shortfall of £99.3 million last time around.
