Mumbai: UK-based Thomas Cook Group Plc on Friday said it will acquire a majority stake in Thomas Cook India from Dubai Financial Group for up to Rs1,336 crore.
Thomas Cook will also repurchase its Egypt business and brand licences in 15 Middle East countries from Dubai Financial Group (DFG).
The total consideration of the three deals will aggregate over Rs 1,555 crore.
In a private transaction with DFG, Thomas Cook will acquire 54.9% shares at Rs107 a share and will give an open offer for a further 20% at the same price, TCIL said in a filing with the Bombay Stock Exchange.
Thomas Cook has agreed through its UK subsidiary to acquire at least 61.8% and up to 74.9% of TCIL’s share capital, it added.
For a 61.8% stake, the group will have to shell out Rs1,080 crore, while a 74.9% holding would cost Rs1,336 crore.
Further, to strengthen its brand value across the world, the group is repurchasing Thomas Cook’s brand business, earlier licenced to Dubai Financial Group, in Egypt and the rights to the Thomas Cook brand across 15 Middle East countries for a consideration of over Rs 218 crore, the company said.
The transactions (except the open offer) are expected to close at the end of March and the open offer is expected to close at the end of May 2008, it said.
“Adding what is one of India’s largest travel and financial services businesses to our portfolio will allow us to take full advantage of the growth prospects that this market offers and fully support our strategy of entering the fast developing emerging markets and expanding our financial services businesses,“ said Manny Fontenla-Novoa, chief executive, Thomas Cook Group.
In January 2006, Thomas Cook Overseas, the erstwhile majority shareholder in Thomas Cook India, had transferred its entire shareholding of 60% to Dubai Financial, a subsidiary of Dubai Investment Group.
“Thomas Cook is purchasing the businesses from Dubai Financial Group for a total cash consideration of between 208- 249 million euros (about Rs1,299-1,555 crore),” Thomas Cook Group Plc said in a filing with the London Stock Exchange.
TCIL is growing at 15% per annum and through the acquisition Thomas Cook would become the second largest travel company in India, the filing stated.
Shares of TCIL were trading at Rs88.50, up 4.98% on the BSE in the afternoon trade, while Thomas Cook Group Plc was trading at 288.25 pence down 3.02% on the London Stock Exchange.