FPJ BUSINESS DESK Mumbai
Global travel business major Thomas Cook on Wednesday said it was in the process of selling its 77.1% stake in its Indian subsidiary and had received several proposals. The news sent the Indian arms stock so
aring. It shot up 19.91 percent to hit the upper circuit level at Rs. 53.90.
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.
” 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 groups balance sheet.” Thomas Cook Group employs 2,700 people in India.
The company has been under a financial stress and last year it sold off Spanish hotel chain Hotels Y Clubs De Vacaciones to Grupo Iberostar for 72.2m euros.
For the quarter ended September, TCIL more than doubled its net profit to Rs. 245.2 million, while revenue increased 20 percent to Rs. 895 million. The figures for the Oct- Dec quarter are yet to be released.
