Thomas Cook to acquire Travel Corporation India Pvt Ltd (TCI)

Thomas Cook India Ltd has announced that the Board of Directors of the Company at its meeting held on December 01, 2006, has decided the following:

1. To invest an amount not exceeding Rs 182,45,00,680.00 in the equity share capital of Travel Corporation (India) Pvt Ltd ("TCI"), by acquiring all the equity shares of TCI numbering 15,76,692 shares from its existing shareholders at a price not exceeding Rs 1,157.17 per share. TCI is, inter alia, in the business of travel management, tour and leisure services, both inbound and outbound and the acquisition would expand the Company's market share, provide synergistic benefits, enhance buying power, extend product portfolio and offer better customer service.

2. To invest an amount not exceeding Rs 16,91,00,000/- in the equity share capital of TT Enterprises Pvt Ltd (TTEPL), by acquiring 76% of the equity shares of TTEPL numbering 12,91,088 shares from its existing shareholders at a price not exceeding Rs 130.98 per share. TTEPL is, inter alia, in the business of visa facilitation services, cargo services and foreign exchange services. The Company would acquire the business of visa facilitation services. The Visa Services Division is in the business of visa facilitation on behalf of various Consulates. Accordingly, the acquisition would add synergistic value to the existing travel business of the Company through vertical integration into visa facilitation services and would provide single window travel related services to customers.

3. To convene an Extraordinary General Meeting of the members of the Company to be held on December 26, 2006 to transact the aforementioned businesses as Special Businesses.

Source : Equity Bulls

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