Tour operator Thomas Cook Group Plc is looking to sell its profitable India unit to retire debt, and will ask potential buyers for bids starting Thursday, said two people close to the development.
The UK-based firm has hired Credit Suisse Group AG to help sell Thomas Cook (India) Ltd, the people said on condition of anonymity.
In December, promoters of Thomas Cook (India) pledged their entire stake (77.11%) in the company with Royal Bank of Scotland Group Plc (RBS). The promoters of Thomas Cook Group are renegotiating loans with banks and deferred financial results for the September quarter.
In November, Thomas Cook Group said its banks, led by Barclays Plc, HSBC Holdings Plc, RBS and UniCredit SpA, have agreed to provide a new £200 million loan facility until 30 April 2013, which replaces the £100 million loan short-term facility announced on 21 October.
Potential bidders for the India unit include rival Cox and Kings Ltd and a clutch of private equity firms such as KKR India Advisors Pvt. Ltd, Actis Advisors Pvt. Ltd, Bain Capital and Carlyle Group and the UK firm is looking to close the transaction by May, the people said.
Thomas Cook India reported a net profit of Rs.24.52 crore for the quarter ended September on revenue of Rs.89.5 crore. It is yet to report its December quarter earnings.
Started in 1881, Thomas Cook (India) is the largest local travel firm dealing with foreign exchange and is among the top five tour operators. Its forex business accounts for 60% of consolidated revenue.
“The sale would not be restricted to its foreign exchange business, but parent company would sell entire Indian business,” said one of the people cited earlier.
An announcement to start the process of selling is expected after the UK company holds it annual general meeting on Wednesday, the people said.
“The agenda of the meeting has not been made public. However, we will give out the minutes of the meeting as soon as it is over on Wednesday,” Derek Woodward, Thomas Cook Group’s company secretary in London, said over the phone.
Thomas Cook (India) declined comment. Credit Suisse Securities (India) Pvt. Ltd also declined to comment but a Credit Suisse official confirmed that the firm has been asked to look for buyers. He requested anonymity.
Cox and Kings declined to comment as the company is in the so-called silent period ahead of reporting quarterly earnings on 14 February. In July, the tour operator has agreed to acquire 100% of Holidaybreak Plc for £312 million in an all-cash transaction through its UK unit Prometheon Holdings (UK) Ltd.
KKR India and Actis Advisors declined comment. In response to an email, Bain Capital said it does not comment on speculation. Devinjit Singh, managing director of Carlyle Group, could not be reached for comments.
India’s travel and tourism industry is expected to grow by 9.2% every year till 2020 to reach $432 billion, the second fastest projected growth in the world, according to GEPL Capital Pvt. Ltd.
Shares of Thomas Cook (India) rose 10% to close at Rs.46.2 on Monday on BSE, while the benchmark Sensex gained 0.58%. The market capitalization of Thomas Cook (India) stood at Rs.979 crore on Monday.
Courtesy : (pr.sanjai) livemint.com
Crosswoods holidays 2011
The UK-based firm has hired Credit Suisse Group AG to help sell Thomas Cook (India) Ltd, the people said on condition of anonymity.
In December, promoters of Thomas Cook (India) pledged their entire stake (77.11%) in the company with Royal Bank of Scotland Group Plc (RBS). The promoters of Thomas Cook Group are renegotiating loans with banks and deferred financial results for the September quarter.
In November, Thomas Cook Group said its banks, led by Barclays Plc, HSBC Holdings Plc, RBS and UniCredit SpA, have agreed to provide a new £200 million loan facility until 30 April 2013, which replaces the £100 million loan short-term facility announced on 21 October.
Potential bidders for the India unit include rival Cox and Kings Ltd and a clutch of private equity firms such as KKR India Advisors Pvt. Ltd, Actis Advisors Pvt. Ltd, Bain Capital and Carlyle Group and the UK firm is looking to close the transaction by May, the people said.
Thomas Cook India reported a net profit of Rs.24.52 crore for the quarter ended September on revenue of Rs.89.5 crore. It is yet to report its December quarter earnings.
Started in 1881, Thomas Cook (India) is the largest local travel firm dealing with foreign exchange and is among the top five tour operators. Its forex business accounts for 60% of consolidated revenue.
“The sale would not be restricted to its foreign exchange business, but parent company would sell entire Indian business,” said one of the people cited earlier.
An announcement to start the process of selling is expected after the UK company holds it annual general meeting on Wednesday, the people said.
“The agenda of the meeting has not been made public. However, we will give out the minutes of the meeting as soon as it is over on Wednesday,” Derek Woodward, Thomas Cook Group’s company secretary in London, said over the phone.
Thomas Cook (India) declined comment. Credit Suisse Securities (India) Pvt. Ltd also declined to comment but a Credit Suisse official confirmed that the firm has been asked to look for buyers. He requested anonymity.
Cox and Kings declined to comment as the company is in the so-called silent period ahead of reporting quarterly earnings on 14 February. In July, the tour operator has agreed to acquire 100% of Holidaybreak Plc for £312 million in an all-cash transaction through its UK unit Prometheon Holdings (UK) Ltd.
KKR India and Actis Advisors declined comment. In response to an email, Bain Capital said it does not comment on speculation. Devinjit Singh, managing director of Carlyle Group, could not be reached for comments.
India’s travel and tourism industry is expected to grow by 9.2% every year till 2020 to reach $432 billion, the second fastest projected growth in the world, according to GEPL Capital Pvt. Ltd.
Shares of Thomas Cook (India) rose 10% to close at Rs.46.2 on Monday on BSE, while the benchmark Sensex gained 0.58%. The market capitalization of Thomas Cook (India) stood at Rs.979 crore on Monday.
Courtesy : (pr.sanjai) livemint.com
Crosswoods holidays 2011
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