The Hindu Business Line : Thomas Cook rights issue after completion of open offer

Mumbai, May 20 Thomas Cook India Ltd will come out with a rights issue after the open offer made by its parent company is complete. The offer opened on May 16 and will close on June 5.

The travel company announced on March 7 that Thomas Cook Group Plc would be acquiring up to 74.9 per cent of the issued share capital in Thomas Cook India Ltd and 100 per cent of Thomas Cook’s branded businesses in Egypt, as well as licences for the Thomas Cook brand in 15 West Asian countries. Following this the parent company was also supposed to make an open offer to acquire a further 20 per cent stake.

“We will go ahead with a rights issue after the open offer is completed to recapitalise ourselves and to fund balance sheet growth,” Mr Madhavan Menon, Managing Director, told newspersons on sidelines of the launch of company’s online travel portal.

In March last year, the travel company had approved a 1:3 rights issue to raise around Rs 225 crore. However, the company deferred the plan after Securities and Exchange Board of India raised queries regarding internal reorganisation in the holding of the parent companies of the promoters.

Mr Menon said that the issue has been resolved as Dubai Financial LLC sold its stake in Thomas Cook India to Thomas Cook UK, however, he refused to divulge details on the ratio or the amount that will be raised.

Aiming to target Internet savvy leisure and corporate travellers, travel agents and partners, all the travel related products of Thomas Cook would now also be accessible through www.thomascook.in.

Highlighting the features of the portal, Mr Amitabh Pandey, President and Head of E-Business, said, “Our portal offers a whole range of travel products and related financial services including domestic and international flight booking, foreign travel insurance, hotels, cruises and Rail Europe tickets and passes. The channel will also augment our extensive distribution network.” The shares of Thomas Cook closed marginally up by 0.29 per cent at Rs 102.50 on Tuesday against Rs 102.20 on the previous day.

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