Thomas Cook to up stake in Indian arm

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 Rs 1,336 crore (Rs 13.36 billion). 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 to up to 249 million euros (over Rs 1,555 crore). In a private transaction with DFG, Thomas Cook will acquire 54.9 per cent shares at Rs 107 a share and will give an open offer for a further 20 per cent 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 per cent and up to 74.9 per cent of TCIL's share capital, it added. For a 61.8 per cent stake, the group will have to shell out Rs 1,080 crore (Rs 10.8 billion), while a 74.9 per cent holding would cost Rs 1,336 crore (Rs 13.36 billion).

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 35 million euros (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.