Thomas Cook to acquire TCI for Rs.182.45 Crores

Thomas Cook India Ltd on December 01, 2006 has announced its decision to acquire Travel Corporation (India) Pvt Ltd (TCI). The Company proposes to acquire the entire shareholding of TCI, which post acquisition will be a wholly owned subsidiary of the Company. The acquisition is subject to the approval of the shareholders of the Company. The all cash deal is worth Rs 182.45 crores.

Mr. Udayan Bose, Chairman of the Company said, "The combination of Thomas Cook India and TCI would bring together two very successful and customer focused Companies, who are committed to providing travelers across India with very best travel products and services". He further added "The TCI acquisition will consolidate our position in the inbound travel segment, which is in line with our objective to establish Thomas Cook India as among the largest players in India. In view of the increase in inbound tourism that the country is witnessing, for us to be able to offer two platforms for inbound traffic will be a big advantage in the market".

Mr. Jehangir Katgara, Director TCI said, "Mergers and acquisitions are strengthening organizations all over the world and India is no exception. In view of the future of the travel industry, the complementary strengths of both the Companies will leave the group well placed to meet any challenges".

Mr. Katgara has accepted the request from the Company to continue on the Board of TCI, which will help the process of consolidation. TCI which will become a wholly owned subsidiary of the Company but will continue to operate as a separate legal entity.

The combined businesses of the Company, LKP Forex and TCI will make this Group one of the largest travel and tour operators in India apart from being the largest in Forex. With its 68 branches in the Company, it will add 88 branches of LKP Forex, once the merger of the Companies (currently pending with the Bombay High Court) is completed. TCI's branches add up to 27. The total platform will have almost 200 branches and outlets, making it the largest organization in terms of distribution capability.

TCI also has 11 offices abroad and these will now serve the Group as selling and distribution offices for the Group, Mr. Bose said.

HSBC were the Advisor to the Company and TCI was advised by Citigroup.

Source : Equity Bulls

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