Thomas Cook pledges stake worth Rs557 crore in Indian arm with RBS
12 Jan 2012
Thomas Cook Group plc, Europe's largest tour operator and UK's second-largest foreign exchange group, has pledged its entire stake in its Indian arm to raise money after posting losses of nearly £400 million in the first six months of 2011.
The embattled travel agency, which has a market capitalisation of approximately $6 billion, has pledged 77.13 per cent stake in Thomas Cook (India) with Royal Bank of Scotland (RBS), according to a regulatory filing on Bombay Stock Exchange.
At the scrip's current market price, the stake would be worth around Rs557 crore (£70 million).
Its problems in the UK have caused a loss of nearly half the value of its Indian subsidiary's stock over the last eight months from Rs62 at the end of April 2011 to Rs32 yesterday.
Thomas Cook (India) is the only profitable unit within the group's global operations, having posted a profit of Rs47 crore on revenues of Rs310 crore for 2011.
RBS is likely to find a buyer for Thomas Cook India from among the possible suitors like Mumbai-based Mercury Travels, Cox & Kings, Chinese firm HNA and London-based foreign exchange group Travelex.
