Thomas Cook UK makes open offer for Indian arm

Mumbai: UK-based travel group Thomas Cook Group Plc has made an open offer to the public to acquire over 20 per cent equity of Thomas Cook India Ltd for about Rs351 crore.

Last week the UK-based company had announced the acquisition of Thomas Cook India and its middle East opoerations (See: Thomas Cook Group acquires controlling stake in Thomas Cook India, Middle East operations).

Thomas Cook UK has offered to acquire 32,795,996 equity shares, representing around 20.4 per cent of the equity capital of Thomas Cook India Ltd (TCIL), at Rs107 per share, TCIL said in a filing with the Bombay Stock Exchange.

The offer would open on April 22 and close on May 12, the statement added.

Thomas Cook India had last week said the UK parent would acquire up to 74.9 per cent of the Indian arm and would also buy back its Egypt business and brand licences in 15 Middle East countries from Dubai Financial Group (DFG) for a total consideration of up to 249 million euros (over Rs1,555 crore).

TCG plans to fund from its balance sheet. The acquisition is earnings accretive and meets TCG's cost of capital criterion, the firm said in a statement. The deal is expected to close by May 2008.