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Tata Capital is not in the race for the buyout of Thomas Cook India.
Putting to rest rumours of Tata Capital's involvement in the bidding process, Mr Govind Sankaranarayanan, CFO, Tata Capital, told Business Line , “It was all speculation. We were never a part of the bidding process.”
However, sources indicate that private equity investors Kohlberg Kravis Roberts (KKR), Carlyle, and Travelex are among the strong contenders. Thomas Cook Group Plc is in the process of selling its 77.1 per cent shareholding in Thomas Cook (India) Ltd (TCIL).
“It is expected that the entire process should be concluded by June. In the bidding, the buyer will need to consider premium for controlling stake, non-compete fees, licensing of brand for 7 to 10 years, and the asset value of 10-12 premium offices owned by company in the metros and main cities,” said a source close to the development. The management of Thomas Cook India expects good growth in both foreign exchange business and travel business (outbound and inbound).
On reports of bidders insisting on a lower valuation, the stock of Thomas Cook India fell 2.51 per cent to Rs 69.80 on the BSE on Wednesday. The parent company, which has a debt of around £2 billion, had offered its profitable Indian unit on sale, as part of its efforts to clean its books. Agency reports indicate that Thomas Cook Group Plc is also looking at selling its France unit.
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