Shares of tour operator Thomas Cook India soared 20 per cent at Rs 53.90 on the BSE on Wednesday after its parent company said it was seeking buyers for its controlling stake in the venture. The group will be launching a formal sale process for its 77.1 per cent shareholding in Thomas Cook (India) Ltd (TCIL). In a filing to the Bombay Stock Exchange, TCIL said numerous third parties are interested in buying the stake.

“Following a number of unsolicited informal expressions of interest, we have decided to seek formal offers for our stake in Thomas Cook India,” Thomas Cook Chief Executive, Mr Sam Weihagen, said in the BSE filing.

The bidders

Potential bidders for the India unit include rival Cox and Kings Ltd and private equity firms such as KKR India Advisors Pvt. Ltd, Actis Advisors Pvt. Ltd, Bain Capital and Carlyle Group. The UK firm is looking to close the transaction by May, according to reports.

Thomas Cook India reported a net profit of Rs 24.52 crore for the quarter ended September on revenues of Rs 89.5 crore. It is yet to report its December quarter earnings. Thomas Cook Group posted a loss of 521 million pounds ($829 million) in fiscal 2011 and is selling assets to reduce debt after holiday bookings fell due to a squeeze on consumer spending in the UK and political unrest in North Africa. Started in 1881, Thomas Cook (India) is the largest travel firm in the country, with major market positions in foreign exchange and travel. It operates in 70 Indian cities across 153 locations. Its forex business accounts for 60 per cent of consolidated revenue.

niveditag@thehindu.co.in

Related Topics
comment COMMENT NOW