Thomas Cook’s India business up for saleFebruary 8th, 2012 - 7:19 pm ICT by IANS
Mumbai, Feb 8 (IANS) Global travel business major Thomas Cook Wednesday said it was in the process of selling its 77.1 percent stake in its Indian subsidiary and had received several proposals. The news sent the Indian arm’s stock soaring.
The London-based parent company has been facing a downturn in business with the debt crisis in Europe and political turmoil across the middle east hampering the global travel industry.
Thomas Cook India (TCIL) has been doing business in the country for 130 years since 1881 and has given fairly strong performance in recent times compared to the group’s businesses elsewhere.
“Following a number of unsolicited informal expressions of interest, we have decided to seek formal offers for our stake in Thomas Cook India,” said Sam Weihagen, chief executive of Thomas Cook.
“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.”
The announcement sent the Indian subsidiary’s stock soaring on the Bombay Stock Exchange. It shot up 19.91 percent, and touch the upper circuit level at Rs.53.90.
For the quarter ending September, TCIL reported more than doubling in its net profit to Rs.245.2 million, while revenue increased 20 percent to Rs.895 million. The figures for the Oct-Dec quarter were not yet released.
However, the parent company has reported a pre-tax loss of approximately $241 million in the quarter ending December.
“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 made,” said Weihagen.
- Fortis buys Singapore diagnostic firm for $50 mn, stock up - Feb 01, 2012
- Pirmal Healthcare scrip up 1.62 percent day after Vodafone deal - Aug 11, 2011
- Cabinet approves TCIL's Saudi acquisition - Jul 04, 2012
- GVK Power denies pact with Changi Airport - Dec 26, 2011
- Sensex closes dull, IT, metal stocks lose (Second Lead) - Jan 18, 2012
- Ford Q2 net income down - Jul 26, 2012
- Infosys beats guidance, revises outlook again - Oct 12, 2011
- Usha Martin Q1 net profit down 86.5 percent - Jul 31, 2012
- Reliance Infra quarterly operating income rises 66 percent - Feb 14, 2012
- Anil Ambani talks of unlocking shareholder value (Roundup) - Sep 27, 2011
- GVK to buy Siemens' Bangalore airport stake - Aug 22, 2011
- Tata Motors third quarter net profit up 40.47 percent - Feb 14, 2012
- Biocon quarterly net profit up 25 percent - Apr 28, 2011
- Infosys to hire 32,000 this fiscal - Apr 15, 2011
- ONGC scrip soars after government nod for stake sale - Feb 29, 2012
Tags: attractive market, balance sheet, bombay stock exchange, debt crisis, doing business, downturn, expressions of interest, global travel industry, india business, indian arm, indian subsidiary, informal expressions, net profit, oct dec, parent company, percent stake, political turmoil, tcil, thomas cook india, travel business