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German parent to buy 20% more in Thomas Cook India

Germany's C&N Touristic, Europe's second-largest tour operator, and its units have offered to buy a further 20 per cent stake in Indian leisure and travel firm Thomas Cook, the National Stock Exchange said on Thursday.

The bid has been proposed at Rs 351.68 a share, a premium of nearly 11 per cent to Wednesday's closing price.

According to the notice posted on the exchange's official website www.nseindia.com the offer will open on October 16 and close on November 14.

JM Morgan Stanley is the lead manager to the issue, it said.

Germany's C&N Touristic, Europe's second-largest tour operator, bought British firm Thomas Cook last year for 550 million pounds. That gave the German company indirect control of Thomas Cook (India), which is 40 per cent owned by the British firm.

According to Indian takeover rules, acquirers who have gained control of a company by buying 15 per cent or more of its shares -- directly or indirectly -- must make an open offer to buy a minimum of 20 per cent from other shareholders.

The offer price must be the average of the high and low of the 26 weeks preceding the date of the public announcement.

An exception is allowed if approved by a shareholder's resolution.

Thomas Cook shareholders rejected a resolution in June to exempt the German company from making the open offer.

Thomas Cook's shares were down 7.2 per cent at Rs 294 in afternoon trade at the Bombay Stock Exchange, while the Sensex was flat.

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