UK-based travel operator Thomas Cook Group’s (TCG) announcement on Wednesday that it was formalising the stake sale process in its Indian subsidiary, Thomas Cook India (TCIL) saw the Indian arm’s share price rise 14.5% intra-day before closing at Rs 57, up 5.8% on Thursday.
Coming after Wednesday’s rally, when it rose 20%, TCIL’s scrip has shot up by 27% in two consecutive trading sessions, giving i a market cap of Rs 1,208 crore at the end of Thursday’s trading session.
TCG on Wednesday said that it was launching a formal sale process of its 77.1% stake in TCIL. “Thomas Cook has received a number of unsolicited informal expressions of interest from third parties to acquire its stake in TCIL and, as a result, has decided to formalise the process,” the company said.
The proposed sale comes in the wake of financial troubles dogging the parent group, TCG which has seen erosion in its cash and liquidity position. “If the offers are attractive then we will consider selling our stake and using the proceeds to continue to strengthen the group’s balance sheet,” said Sam Weihagen, chief executive, Thomas Cook.
{{/usCountry}}The proposed sale comes in the wake of financial troubles dogging the parent group, TCG which has seen erosion in its cash and liquidity position. “If the offers are attractive then we will consider selling our stake and using the proceeds to continue to strengthen the group’s balance sheet,” said Sam Weihagen, chief executive, Thomas Cook.
{{/usCountry}}Madhavan Menon, MD, TCIL declined to speak as the company is in silent period pending announcement of its third quarter results on February 16.
“TCIL was financially and operationally independent of TCG,” Menon said in a statement to the BSE.