It is been reported that UK based travel operator, Thomas Cook Group Plc, Europe's second-biggest travel company, will buy back the Indian unit and purchase Egyptian retail outlets and Middle East brand rights to regain worldwide control of its trademark.
If you would remember, TCIL was sold by German owners Lufthansa to DFG (Dubai Financial Group) as a part of restructuring in 2006. The Dubai group owned 62% in TCIL and the buyback is being done at Rs 107 per share, according to highly placed sources in the company. The deal is expected to be announced globally later today. The TCIL share rose almost 5% to Rs 88.50 on the BSE within five minutes of the market opening.
If you would remember, TCIL was sold by German owners Lufthansa to DFG (Dubai Financial Group) as a part of restructuring in 2006. The Dubai group owned 62% in TCIL and the buyback is being done at Rs 107 per share, according to highly placed sources in the company. The deal is expected to be announced globally later today. The TCIL share rose almost 5% to Rs 88.50 on the BSE within five minutes of the market opening.
The travel operator is buying the assets for at least 208 million euros in cash, using its own funds. It will get a stake of at least 61.8 percent and as much as 74.9 percent in the Indian division, which has about 180 travel stores in 40 cities, as well as 22 Egyptian branches run under its name and the rights to its brand in 15 other Middle East nations.
Thomas Cook can boost the Indian division's sales more quickly than Dubai Financial because it can offer local travelers a wider variety of European destinations, Chief Executive Officer Manny Fontenla-Novoa said on a conference call with journalists. ``The acquisition fully supports our strategy,'' he said.
The travel company is named after its founder, who escorted his first party of visitors to Egypt in 1869, Thomas Cook's Web site shows. He organized and led the first around-the-world tour in 1872-73, taking 222 days to cover more than 25,000 miles.
TCIL has a strong presence in the Forex, Vacation and business travel segments. Since the purchase by the Dubai group, the company adopted series of acquisitions, mainly in the travel and foreign exchange space. It bought out LKP Forex & Travel Corporation of India (TCI) to consolidate its revenue opportunities in India.
The average margin for Thomas Cook India is not more than 5% as the Ticket and FX market is highly competitive with no entry barrier. No wonder the company gets bought and sold (mostly with losses) every 5th year. TCIL with 40 Branches and over 2500 staff earned Rs 225.8 crore as Revenue and profit of Rs 30.5 crore only though it is present in India for last 150 Yrs.
It will be interesting to see the fate of Madhavan Menon, the current MD, as indeed TCOOK has not been able to push the Profits as expected. Practically the whole Top Management including the celebrated ex CEO Ashwini Kakkar left the company owing to the take-over by Dubai group.
by
MKJ
For http://www.newsandreviews.in/
Link – http://www.buynowindia.com/newsandreviews/index.php/News/
Thomas Cook can boost the Indian division's sales more quickly than Dubai Financial because it can offer local travelers a wider variety of European destinations, Chief Executive Officer Manny Fontenla-Novoa said on a conference call with journalists. ``The acquisition fully supports our strategy,'' he said.
The travel company is named after its founder, who escorted his first party of visitors to Egypt in 1869, Thomas Cook's Web site shows. He organized and led the first around-the-world tour in 1872-73, taking 222 days to cover more than 25,000 miles.
TCIL has a strong presence in the Forex, Vacation and business travel segments. Since the purchase by the Dubai group, the company adopted series of acquisitions, mainly in the travel and foreign exchange space. It bought out LKP Forex & Travel Corporation of India (TCI) to consolidate its revenue opportunities in India.
The average margin for Thomas Cook India is not more than 5% as the Ticket and FX market is highly competitive with no entry barrier. No wonder the company gets bought and sold (mostly with losses) every 5th year. TCIL with 40 Branches and over 2500 staff earned Rs 225.8 crore as Revenue and profit of Rs 30.5 crore only though it is present in India for last 150 Yrs.
It will be interesting to see the fate of Madhavan Menon, the current MD, as indeed TCOOK has not been able to push the Profits as expected. Practically the whole Top Management including the celebrated ex CEO Ashwini Kakkar left the company owing to the take-over by Dubai group.
by
MKJ
For http://www.newsandreviews.in/
Link – http://www.buynowindia.com/newsandreviews/index.php/News/
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