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Thomas Cook India is evaluating the possibility of acquiring the brand for three markets including India and Sri Lanka. This comes after the announcement by Thomas Cook UK to go for liquidation.
Read more:Thomas Cook collapse: Bailout fails, tourists stranded
Thomas Cook India pays Rs 2 crore a year fee for the brand. “Until 2024 there can be no change in the fee arrangement. If we buy the brand we will buy it only for the three markets. We will not buy the brand globally. But we will evaluate for India, Sri Lanka and Mauritius,” said Madhavan Menon, Chairman and Managing Director, Thomas Cook India at an analysts call.
When asked if there could be a change in the brand after 2024, Menon said that Thomas Cook brand has been around for a long time so, “ I don't want to jump and say we will change the brand until we do a review. I will have to take inputs of the shareholders. I will try to understand all the risk,” he said.
While the 178-year-old British tour operator Thomas Cook collapsed on Sunday night, Thomas Cook India Group has not been impacted at all as Thomas Cook India Group is an entirely different entity. It was acquired by Fairfax Financial Holdings (Fairfax), a Canada based multinational investment company in August 2012.
Also read:Why Thomas Cook (India) is not affected by Thomas Cook's collapse
"The last seven years have been fruitful as we continue to grow and build our legacy as an independent entity after Fairfax Financial Holdings acquired a 77 percent stake in Thomas Cook India Ltd. (TCIL) in 2012," Thomas Cook India said in a statement.
The British entity said that an application was made to the High Court for a compulsory liquidation of the Company before the opening of business today and an order has been granted to appoint the Official Receiver as the liquidator of the Company. Menon said that he will see who will be appointed as the receiver and then explore the possibility of putting in a bid for the brand.
The stocks of Thomas Cook India ended 2.68 per cent lower at Rs 152.30.
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